SOUTH DAKOTA CORPORATION(2-3)     SOUTH DAKOTA CORPORATION uses a job-order costing system with normal costing

SOUTH DAKOTA CORPORATION(2-3)

SOUTH DAKOTA CORPORATION uses a job-order costing system with normal costing.  At the start of the period, the company had the following balances:

At the start of the period, only Job Alpha was in finished goods.

During the month of February, the following transactions occurred:

1. Purchased raw materials on account for $24,500.
2. Requisitioned $23,000 of materials for use in production.  Of the total, $9,000 was for Job Beta, $8,500 for Job Gamma and 5,500 for Job Sigma.
3. Direct labor incurred for the month was $36,000.  The average wage rate is $20 per hour.  Direct labor was used for jobs as follows:
   • Job Beta –  800 hours=16000
   • Job Gamma – 600 hours=12000
   • Job Sigma – 400 hours=8000
4. Actual overhead incurred for the period was $17,900 (credit various payables). *off by 100?
5. The company applied overhead to production at the rate of $10.00 per direct labor hour.^1,800*10=18,000
6. Job Beta and Job Gamma were completed during the period and transferred to finished goods.
7. Sold Job Alpha and Job Beta to their respective customers on account at cost plus 40%.

REQUIRED:

1. Prepare all journal entries for items a) through g)
2. Post all job costs to simplified job-cost sheets.
3. Post summary job-cost information and other transactions to T-accounts as appropriate.
4. Compute the ending raw materials, work in process and finished goods inventories.
5. Compute any misapplied overhead and journalize
6. Compute sales, cost of sales and gross profit as shown on the Income Statement.