# Stockman Co. began 2010 with three jobs in process: - 12295

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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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