Sail Away takes special orders to manufacture sail boats forhigh end customers. Complete the job cost sheets for Sail Away forSeptember based on the following information. Prepare journalentries to record the transactions as well as post to the job costsheets.
a. Purchased raw materials on credit, $145,000.
b. Materials requisitions: Job 240, $48,000; Job 241, $36,000; Job242, $42,000; indirect materials were $12,000.
c. Paid $130,000 for factory wages.
d. Time tickets used to charge labor to jobs: Job 240, $40,000; Job241, $30,000; Job 242, $35,000, indirect labor is $25,000.
e. The company incurred the following additional overhead costs:depreciation of factory building, $70,000; depreciation of factoryequipment, $60,000; expired factory insurance, $10,000; utilitiesand maintenance cost of $20,000 were paid in cash. (Hint: Becareful – Cash is not your only credit).
f. Applied overhead to all three jobs. The predetermined overheadrate is 190% of direct labor cost.
g. Transferred jobs 240 and 242 to Finished Goods Inventory.
h. Sold job 240 for $300,000 for cash.
i. Closed the under- or over-applied overhead account balance.
