Sinatra Industries, Inc. uses a job order cost system. The following data summar
ID: 2374476 • Letter: S
Question
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:
Materials purchased on account, $32,760.
Materials requisitioned and factory labor used:
Factory overhead costs incurred on account, $6,300.
Depreciation of machinery and equipment, $2,200.
The factory overhead rate is $58 per machine hour. Machine hours used:
Jobs completed: 301, 302, 303, and 305.
Jobs were shipped and customers were billed as follows: Job 301, $9,150; Job 302, $12,350; Job 303, $16,600.
**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.
Explanation / Answer
.........................................debit.............................credit account payable(DM).................32760 account payable(FOH)................6300 Depreciation...........................2200 account receivable....................................................9150 account receivable....................................................12350 account receivable....................................................16600