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A. 1. The source documents for direct materials are material requisition slips. 2.

The source documents for direct labor are time cards.

3. The source documents for manufacturing overhead are predetermined overhead rates. b. Predetermined overhead rate is 120%. Ex. $528/$440=120 c. total costs direct materials direct labor manufacturing overhead total unit cost 4825 1360 1632 7820 3.91 (7820/2000)

d. journal entry 15-Jul Finished goods inventory works in process inventory 7820 7820

Yellowknife Manufacturing Company Costs of Goods Manufactured Schedule For 5/31/2005 14700 62400 32000 48000 142400 157100 17900 139200

Work in progress direct materials used direct labor manufacturing overhead applied total manufacturing cost total cost of work in progress less work in progress 5/31 costs of goods manufactured

B Yellowknife Manufacturing Company Partial income statement 5/31/2005

Sales Cost of goods sold finished goods 5/1 costs of goods manufactured costs of goods available for sale finished goods 5/31 Cost of goods sold gross profit

200000 12600 139200 151800 11500 140300 59700

C On the 5/31 balance sheet the manufacturing inventories are listed as current assets for the finished

ing Company tured Schedule

ing Company

ssets for the finished goods, works in progress, and raw materials.

Han Furniture Company Sanding Department Production cost report 4/30/2005 Quantities Units to be accounted for Works in progress 4/1 Started into production total units Units accounted for transferred out works in process 4/30 total units Costs Unit Costs Costs in April equivalent units unit costs Costs to be accounted for works in progress 4/1 started into production Cost reconciliation schedule costs accounted for transferred out works in progress materials conversion costs tot 36000 15000 2.40 (36000/15000) Physical Units Materials

0 15000 15000

12000 3000 15000

12000 3000 15000

Han Furniture Company Sanding Department Production cost report

Conversion costs


12000 1200 (3000/40) 13200

673200 (30000+37320) 13200 5.10 (67320/13200)

103320 7.5

0 103320

90000(12000*7.5) 7200(3000*2.4) 6120(1200*5.1)

13320 103320

Dear Ms. Mary Mahr,

I believe I have found the cause of the production costs only showing 1000 equivalent units. Quantity can be measured in two ways. The ending inventory can be measured in physical or equivalent units. Physical units are actual units rather than with equivalent units which do not take into count in what stage of completion the units are in. The physical units are 2000 of which 1000 are complete.

quivalent units. ed in physical or nits which do not take 2000 of which 1000

2. Contrast the primary focus of job order cost accounting and of process cost accounting. The primary focus of job order cost accounting is on the individual job. The primary focus of process cost accounting is the process involved in the production of products.


mary focus of

3. What are the similarities between a job order and a process cost system? Ch The similarities are that all three manufacturing costs are the same, the accumulation of costs of materials, labor, and overhead are the same, and the flow of costs are the same.

ulation of costs me.