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P.

3-58
Manufacturing Overhead (MOH) Rate
Budgeted MOH
MOH Rate =
Direct Labor Hours

US$ MOH Rate per Labor hours


= 462000
22.000
21000
No Description Debit Credit
a Raw Material Inventory 6000
Account Payable 6000

b Raw Material Inventory 5200


Account Payable 5200

c Work in Process Inventory - Job T74 1430 (260 x 5.5)


Work in Process Inventory - Job C41 9900 (1,100 x 9)
Raw Material Inventory 11330
Manufacturing Overhead - Actual 120 (10 x 12)
Manufacturing Supplies Inventory 120

d Work in Process Inventory - Job T74 17000 (850 x 20)


Work in Process Inventory - Job C41 19000 (950 x 20)
Manufacturing Overhead - Actual 14100 (4,500 + 9,600)
Wages Payable 50100

e Manufacturing Overhead - Actual 13000


Accumulated Depreciation: Building and Equipment 13000

f Manufacturing Overhead - Actual 1340


Cash 1340

g Manufacturing Overhead - Actual 2400


Utilities Payable 2400

h Manufacturing Overhead - Actual 2370


Cash 2370

i Manufacturing Overhead - Actual 2900


Prepaid Insurance 2900

j Salaries Expense 7500


Cash 7500

k Depreciation Expense: Office Equipment and Space 4500


Accumulated Depreciation: Office Equipment and Space 4500

l Miscellaneous Expense 1150


Cash 1150

m Work in Process Inventory - Job T74 18700 Lihat Job Cost Sheet T74
Manufacturing Overhead - Applied 18700
Work in Process Inventory 37130 Lihat Job Cost Sheet T74
Work in Process Inventory - Job T74 37130
Finished Goods Inventory 37130
Work in Process Inventory 37130

n Account Receivable 27360 (76/2 x 720)


Sales 27360
Cost of Goods Sold 18565 (37,130/76 x 76/2)
Finished Goods Inventory 18565
ADDITIONAL JOURNAL
o Work in Process Inventory - Job C41 20900 Lihat Job Cost Sheet C41
Manufacturing Overhead - Applied 20900
p Manufacturing Overhead - Applied 39600
Manufacturing Overhead - Actual 39600
q Manufacturing Overhead - Actual 3370
Cost Of Goods Sold 3370
r Work in Process Inventory 49800 Disclose Only
Work in Process Inventory - Job C41 49800
Cash Manufacturing Overhead - Actual Manufacturing Overhead - Applied
B 11000 B B
f 1340 c 120 p 39600 p 39600 m 18700
h 2370 d 14100 o 20900
j 7500 e 13000 E
l 1150 f 1340
E -1360 g 2400
h 2370
Account Receivable i 2900
B 20000 36230 39600
n 27360 q 3370
E 47360 E

Prepaid Insurance Utilities Payable


B 6000 B
i 2900 g 2400
E 3100 E 2400

Raw Material Inventory Salaries Expense


B 150000 B
a 6000 c 11330 j 7500
b 5200 E 7500
E 149870
Depreciation Expense: Office Accumulated Depreciation: Office
Equipment and Space Equipment and Space
Manufacturing Supplies Inventory B B
B 600 k 4500 4500
c 120 E 4500 E 4500
E 480

Work in Process Inventory - Job T74 Work in Process Inventory Finished Goods Inventory Cost of Goods Sold
B B 89000 B 223000 B
c 1430 m 37130 m 37130 m 37130 m 37130 n 18565 n 18565 q 3370
d 17000 r 49800 r 49800 r 49800 E 15195
m 18700 E 89000 E 291365
E

Work in Process Inventory - Job C41 Miscellaneous Expense


B B
c 9900 r 49800 l 1150
d 19000 E 1150
o 20900
E

Accumulated Depreciation: Buildings


and Equipment Sales
B 99000 B
e 13000 n 27360
E 112000 E 27360

Account Payable
B 14500
a 6000
b 5200
E 25700

Wages Payable
B 8500
d 50100
E 58600
JOB COST SHEET
JOB T79
Ref. Raw MaterialDirect LaborMOH Applied Balance
c 1430 1430
d 17000 17000
m 18,700 18700
37130
JOB COST SHEET
JOB C41
Ref. Raw MaterialDirect LaborMOH Applied Balance
c 9900 9900
d 19000 19000
o 20900 20900
49800
Bandway Company
Cost of Goods Manufactured Statement
For the period ended 31 October XX

Direct Material:
Raw Material 1 October 150000
+/+:Purchase during October 11200
Raw Material Available for Use 161200
-/-: Raw Material 31 October -149870
Raw Material Used 11330

Direct Labor 36000

Manufacturing Overhead
Indirect Material Used 120
Indirect Labor 14100
Depreciation: Building and Equipment 13000
Rent Expense: Warehouse 1340
Utility Expense 2400
Property Tax: Factory 2370
Amortization of Prepaid Insurance: Factory 2900
Total Manufacturing Overhead - Actual 36230
+/+:Overapplied Manufacturing Overhead 3370
Manufacturing Overhead 39600

Total Manufacturing Cost 86930


+/+:Work in Process Inventory 1 October 89000
-/-: Work in Process Inventory 31 October -89000
Cost of Goods Manufactured 86930
Bandway Company
Cost of Goods Sold Statement
For the period ended 31 October XX

Finished Goods Inventory 1 October 223000


+/+:Cost of Goods Manufactured 86930
Cost of Goods Available for Sale 309930
-/-: Finished Goods Inventory 31 October -291365
Overapplied Manufacturing Overhead -3370
Cost of Goods Sold 15195
Bandway Company
Income Statement
For the period ended 31 October XX
Sales 27360
-/-: Cost of Goods Sold -15195
Gross Profit 12165
Selling and Administrative Expenses
Salaries Expense -7500
Depreciation Expense: Office Equipment and Space -4500
Miscellaneous Expense -1150
Total Selling and Administrative Expenses -13150
Earning/ (Loss) Before Tax -985