Chapter 17--Job Order Costing

170. The balance of Material Q on May 1 and the receipts and issuances during May are as follows:

Balance May 1	8 at $32
Received May 11	23 at $33
Received May 25	15 at $35
Issued May 17	14
Issued May 27	18

Determine the cost of each of the issuances under a perpetual system, using the first-in, first-out method.

171. Prepare the journal entry for materials and labor, based on the following:

Raw materials issued:	$850		for Job 609
	600		for general use in the factory
Labor time tickets:	$1,600		for Job 609
	400		for supervision

172. Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system:

Materials		Work in Process
	(a)		(a)	(d)
			(b)
			(c)
Wages Payable		(f)
	(b)
Factory Overhead		Finished Goods
(a)	(c)		(d)	(e)
(b)	(f)		(f)
Cost of Goods Sold
(e)
(f)

Describe each of the six transactions.

173. On January 2nd, Newsprint Manufacturing purchases 5 rolls of paper on account at $125.00 per roll for use within the production process. On January 5th 4 rolls of this paper are issued to Job 010507A in the Printing Department. The Printing Department records $675.00 in direct labor and $1,150.00 of factory overhead to Job 010507A. On January 8th Printing transfers Job 010507A to the Folding Department. The folding department applies $450.00 in direct labor and $655.00 in factory overhead to Job 010507A. Job 010507A is transferred to Finished Goods Inventory on January 9th.

(a)	Journalize the purchasing of the paper to Raw Materials Inventory.
(b)	Journalize the transfer of raw materials to work in process, the application of direct labor, and the application of manufacturing overhead to Job 010507A while in the Printing Department.
(c)	Journalize the transfer of Job 010507A to the Folding Department at actual cost.
(d)	Journalize the application of direct labor, and the application of manufacturing overhead to Job 010507A while in the Folding Department.
(e)	Journalize the transfer of Job 010507A to Finished Goods Inventory at actual cost.

174. The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels.

To complete the job they requisitioned 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set.

The cost driver that the Stamping Department uses is drop-forge strokes which are counted on a machine mounted counter. $2.25 is applied as overhead for each drop-forge stroke. Additionally $375.00 of overhead is applied to each job due to setup and teardown.

Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6 1/2 hours of labor by the team.

When the job was complete Job 051507A was transferred to Semi-finished Goods Inventory (SFGI). When the job was transferred, 20 sheets were returned unused to raw material inventory, 75 grommet sets were returned, and there were 1,115 strokes on the counter.

Journalize all events depicted as of May 15th.