1.

a.
* Calculating:

Beginning balance: Job 7640 $77,800

Job 7641 50,600

$ 128,400

Direct materials: Job 7640 $ 30,000

Job 7641 43,000

Job 7642 58,000

$ 131,000

Direct labor Job 7640 $36,000

Job 7641 48,000

Job 7642 55,000

$139,000

Manufacturing overhead: Job 7640 $43,200

Job 7641 57,600

Job 7642 66,000

$ 166,800

Completed job: Job 7640 beginning balance + direct materials + direct labor + MOH
= 77,800 + 30,000 + 36,000 + 43,200 = $187,000

Job 7641 Beginning balance + direct materials + direct labor + MOH

= 50,600 + 43,000 + 48,000 + 57,600 = $199,200

Total completed job = 187,000 + 199,200 = $ 386,200

 Work in Process Inventory

Beginning balance : $128,400 Completed job: $386,200

Direct Materials: 131,000

Direct labor: 139,000

MOH: 166,800

Balance: $ 179,000

Unfinished job 7642: $179,000

b.
Actual Manufacturing Overhead $160,000

Manufacturing inccured on account 120,000

Indirect materials 14,000

Indirect labor 18,000

Factory depreciation 8,000

Manufacturing overhead applied = 43,200 + 57,600 + 66,000 = $166,800

Manufacturing overhead

Actual Applied

$160,000 $166,800

$ 6,800 overapplied
Adjusting entry:

Manufacturing Overhead 6,800

Cost of goods sold 6,800

c.

Sales of Job Nos.1638, 1638 and 1641: $530,000

Cost of goods sold

Job 1638 $87,000

Job 1639 92,000

Job 1641 199,200

Less Overapplied MOH $ 6,800

COGS $ 371,400

Gross Profit $ 158,600

2.a

Physical unit Percentage complete

Materials Convestion cost

Work in process July,1 500 100% 60%

Started into production 1000

Total unit 1500

Units transferred out 900

Work in process, July 30 600 100% 40%

Total unit 1500

Equivalent unit

Materials Conversion cost

Units transffered out 900 900

Work in process, July 30

600 x 100% 600

600 x 40% 240

Total equivalent unit 1,500 1,140
(2)

Work in process, July 1

Direct materials cost $750

Costs added to production during July

Direct materials cost 2400

Total materials cost $3,150

Units materials cost = Total materials cost : Equivalent units of materials

= 3,150 : 1,500 = $2.1

Work in process, July 1 $600

Coversion cost

Costs added to production during June

Conversion cost 2,820

Total conversion cost $3,420

Unit conversion cost = Total conversion cost : Equivalent unit of conversion

= 3,420 : 1,140 = $3
(3)

Costs accounted for

Transferred out (900 x 5.1) $4,590

Work in process, July 31

Materials (600x2.1) 1,260

Conversion costs (600x40%x3) 720 1,980

Total costs $6,570

b.

POLK COMPANY
Production Cost Report
For the month end July,2020

Equivalent unit

Physical unit Materials Conversion cost

Quantities

Units to be accounted for

Work in process, July 1 500

Started into production 1,000

Total units 1,500

Units accounted for

Transferred out 900 900 900

Work in process, July 31 600 600 240 (600 x 40%)

Total units 1,500 1,500 1,140

Costs

Unit costs Materials Conversion cost Total

Total cost $ 3,150 $3,420 $ 6,570

Equivalent units 1,500 1,140

Unit costs $ 2.1 $ 3 $ 5.1

Costs to be accounted for

Work in process, July 1 $ 1,350

Started into production $ 5,220

Total costs Cost $ 6,570

Reconciliation Schedule

Costs accounted for

Transferred out (900x5.1) $ 4,590

Work in process, July 31

Materials (600 x 2.1) 1,260

Conversion costs (600 x 40% x 3) 720 1,980

Total costs $ 6,570