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Smith Die Company manufactures cutting dies for the shoe industry. Each set of dies is custom designed to a customers templates. During the first week of May, six orders were received from customers. They were assigned job numbers 1005 to 1010. The following transactions occurred during the first week of May: Smith Die purchased steel on account from Eastern City Steel costing $5,600. The company received and paid for supplies (indirect materials) from Mallard Supply costing $2,800. Material requisitions indicated that materials were issued to the factory floor as follows: Job No. Direct Materials Indirect Materials 1005 $ 630 1006 670 1007 1,500 1008 800 1009 470 1010 430 Totals $ 4,500 $ 1,100 The labor time ticket summary reflected the following costs for the week: Job No. Direct Labor Indirect Labor 1005 $ 1,700 1006 2,000 1007 3,400 1008 1,500 1009 850 1010 560 Totals $ 10,010 $ 6,900 Overhead was applied to all jobs in process at 150 percent of direct labor cost. Jobs 1005, 1006, 1007, and 1008 were completed and transferred to finished goods. Jobs 1009 and 1010 were still in process at the end of the week. Jobs 1005, 1006, 1007,and 1008 were shipped to customers and billed at 130 percent of total job cost.

(a) Your answer is correct. Calculate the total cost of each job. Total Cost 1005 $ 1006 $ 1007 $ 1008 $ 1009 $ 1010 $

(b) Your answer is partially correct. Try again. Prepare journal entries to record the above information. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. (To record purchase of steel) 2. (To record purchase of supplies) 3. (To record materials used in production) 4. (To record labor) 6. (To record overhead applied to production) 7. (To record jobs completed) 8. (To record the sale of finished goods)

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