Problem
Sinatra industries, inc. uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:
a. materials purhcased on acct $32,760
b. materials requisitioned and factory labor used:
JOB... MATERIALS... FACTORY LABOR
301... $3,290... $3,080...
302... 4,025... 4,160...
303... 2,660... 2,080...
304... 9,030... 7,640...
305... 5,740... 5,810...
306... 4,170... 3,710...
for general factory use... 1,200... 4,550...
c. factory overhead costs incurred on account : $6,300
d. depreciation of machinery and equipment : $2,200
e. the factory overhead rate is $58 per machine hour. machine hours used:
JOB... MACHINE HOURS
301... 26
302... 38
303... 30
304... 80
305... 40
306... 26
total... 240
f. jobs completed: 301, 302, 303, and 305
g. jobs were shipped and customers were billed as follows:
Job 301 $9,150
Job 302 $12,350
Job 303 $16,600
INSTRUCTIONS
1. Journalize the entries and record the summarized operations.
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as dates. Insert memo account balances as of the end of the month.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.