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Stockman

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									Stockman Co. began 2010 with three jobs in process:


                       Type of Cost


Job No.      Direct        Direct             Overhead       Total
            Material      Material
247        $ 77,200         $ 91,400          36,560     $ 205,160
251         176,600         209,800           83,920       470,320
253         145,400         169,600           67,840       382,840
Totals    $ 399,200        $ 470,800     $ 188,320       $ 1,058,320


During 2010, the following transactions occurred:
1. The firm purchased and paid for $542,000 of raw material.
Factory payroll records revealed the following:
- Indirect labor incurred was $54,000.
- Direct labor incurred was $602,800 and was associated with the jobs as
follows:


Job No.                  Direct Labor Cost


247                       $ 17,400
251                         8,800
253                         21,000
254                        136,600
255                        145,000
256                         94,600
257                        179,400


3. Material requisition forms issued during the year revealed the
following:
- Indirect material issued totaled $ 76,000
- Direct material issued totaled $ 466,400 and was associated with jobs
follows:
Job No.                   Direct Material Cost


247                         $ 12,400
251                            6,200
253                            16,800
254                           105,200
255                           119,800
256                            72,800
257                           133,200
4. Overhead is applied to jobs on the basis of direct labor cost.
Management budgeted overhead of $ 240,000 and total direct labor cost
of $ 600,000 for 2010. Actual total factory overhead costs (including
indirect labor and indirect material for the year totaled $ 244,400.
5. Jobs #247 through #255 were completed and delivered to customers,
who paid for the goods in cash. The revenue on these jobs was $
2,264,774.
a. Journalize all preceding events.
b. Determine the ending balances for the jobs still in process.
c. Determine the cost of jobs sold, adjusted for under applied or over
applied overhead.

								
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