Nami Yee is a contractor specializing in custom-built jacuzzis. On my 1, 2012 her ledger contains the following data. Raw Materials Inventory: $30,000 Work in Process Inventory: 12,200 Manufacturing Overhead: 2,500(dr.) The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000. Subsidiary data for Work in Process Inventory of May 1 include: Job Cost Sheets Job by Customer Direct Materials Direct Labor Manufacturing Overhead Scott $2,500 $2,000 $1,400 Condon 2,000 1,200 840 Keefe 900 800 560 __________ __________ __________ $5,400 $4,000 $2,800 During May, the follwoing cost where incurred:
(a) raw materials purchased on account $4,000,
(b) labor paid $7,600, and
(c) manufacturing overhead paid $1,400. A summary of materials requistions slips and time tickets for the month of May reveals the following. Job by Customer Materials Requisition Slips Time Tickets Scott $ 500 $ 400 Condon 600 1,000 Keefe 2,300 1,300 Tarr 1,900 2,900 _______________ ___________ 5,300 5,600 General use 1,500 2,000 _______________ ___________ $6,800 $7,000 Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost. The jacuzzis for customers Scott, Condon, and Keefe were completed during May. Each jacuzzi was sold for $12,00 cash. a) Prepare journal entries for the May transactions:
(i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred;
(ii) assignment of raw materials, labor, and overhead to production; and
(iii) completion of jobs and sale of goods.