You are on page 1of 9

Ex.

18–7
a.
Cost of goods sold:
Sales.....................................................................................
Less gross profit.................................................................
Cost of goods sold..............................................................
b.
Direct materials cost:
Materials purchased............................................................
305,000
Less: Indirect materials......................................................
Materials inventory...................................................
Direct materials cost...........................................................
258,000
c.
Direct labor cost:
Total manufacturing costs for the period.........................
640,000
Less: Direct materials cost................................................
Factory overhead......................................................
Direct labor cost..................................................................
276,500

$ 850,000
235,000
$ 615,000

$
$ 27,000
20,000

47,000
$

$
$ 258,000
105,500*

363,500
$

*$65,000 + $27,000 + $13,500

Ex. 18–13
a.

Work in Process..............................................................
Factory Overhead............................................................
Wages Payable...........................................................

3,836
845

b. Work in Process..............................................................
Factory Overhead......................................................

4,932

$3,836 ÷ $14 per hour = 274 hours
274 hours × $18 per hour = $4,932

4,681
4,932

..665 9... Factory 1—$435 debit (underapplied) ($20......... ($19. Factory Overhead...450 – $9....035) Factory 2: Work in Process............ 18–14 a... ($12.....50 per direct labor hour ($112... Factory 1: $19.........500 machine hours) b......................665) Factory 2—$175 credit (overapplied) ($9.................625 ..................625) 19...00 × 1..Ex.................................50 × 770) d....665 19.............. Factory 2: $12..100 – $19...000 direct labor hours) c............................. Factory 1: Work in Process...625 9.............500 ÷ 12.......500 ÷ 9.... Factory Overhead....00 per machine hour ($237...

....000 + $24. $250..............................................000 215................ Work in Process.......................................................................................000 Office Overhead....................000 *$215.......... × $150).......... 18–22 a...000 + $50............ Office Overhead..........000 + $45........ 28....500 $ (1................ 50.......000 4.............000 214..............................................Ex......... Cash.................................000 + $33.000 Accounts Receivable..........or underapplied office overhead is closed to cost of services annually....... 45.000 Salaries Payable.................... 4.....................................000 Work in Process.........................000 50........000 Work in Process...........500) c.............................................500 b......500 63...................................... Fees earned..500 28........000 45............ Assumes the over.................... Cash...............000)....000 250.................. Cash.................................. Salaries Payable......500 – $1............... $ 32..............000 Cost of Services......000 24............. Cost of services.500* *$63.................................. 24.....................000 33............. Supplies........................ Salaries Payable........ 250............................ ............. 7 11 22 25 30 31 31 31 31 31 Work in Process (420 hrs............. Office overhead incurred ($28..........000 Work in Process (670 × $50)......000 + $4... 33. 63... Mar.........000 63...........000* $ 36...... Overapplied overhead............ Consultant Fees Payable..500 Office Overhead...... × $200)........................... 215..000 33............................... Office overhead applied..................................000 Work in Process (250 hrs.. Gross profit..........500.................................................................... 63... Fees Earned.....................................

........................... $ 300........................000 48............300 Less: Materials used in production...............................300 Less: Cost of goods sold.........100 $ 4..... Finished goods inventory.......500 70.....400 $ 45.............................................................100 $ $116..300 $ 6....................800 Direct labor...... Income from operations.................................200 .......... Work in process inventory.......... Additions to work in process........................................ Administrative expenses.............................. May 31... Gross profit....... May 31..500 Work in process inventory: Materials used in production...............................................................900 Selling expenses.. 510............ MERCURY SHOE COMPANY Income Statement For the Month Ended May 31..500 Materials inventory: Purchased materials... 2006 Revenues......... 209............................ May 31...................875 $ 304................................................ Materials inventory................. 18–19 a.......................................... 311............175 Less: Transferred to finished goods..... Factory overhead (75% × $94.............................. b............................ $ 145.........................000 Cost of goods sold...875 Finished goods inventory: Transferred to finished goods................................... 155...... 304..... 145..................... $ 300..........400 164.............................Ex. $ 94.....................................................500).....800 $ 9.........

00 Total 140.00 140. 2006 Date completed July 11.50 Comments: The direct materials cost exceeded the estimate by $54 because three meters of materials were spoiled.00 1520 216. No. No.00 Total cost 351. Req. .00 Item Direct materials Direct labor Factory overhead Total cost Amount 216.00 1519 144. 18–4A 1.00 14 hours at $10 140.Prob. 2006 Date wanted July 16.00 70. 00–8–38 ESTIMATE Direct Materials Direct Labor Amount 9 meters at $18 Total Summary Amount Amount 162.50 418.00 Direct materials Direct labor Factory overhead 162.00 52.00 ACTUAL Direct Materials Mat. 72.00 162.00 Total Description 8 hours at $10 7 hours at $10 Summary Amount 80. JOB ORDER COST SHEET Customer Address Item Danzel Bishop 1900 Peachtree Atlanta Reupholster couch and chair Date June 10. 2006 Job. U642 U651 Total Description 4 meters at $18 8 meters at $18 Amount Direct Labor Time Ticket No. and 2.00 150. The direct labor cost exceeded the estimate by $10 because an additional one hour of labor was used by an inexperienced employee.00 150.00 49.

From table above.800 260 50.000.391 2. 1 Work in Process Direct Materials $ 4. Inventory Cost Job 51 Job 52 Job 54 Job 55 Total 10 140 8 12 $ 3.400 Total 10. Supporting calculations: Job No.2 and from table above.400 16.800 + + $55.260 $195.500 15.220 13.480.720 42.000 + $106. From table above.834 .000 $ 106.646) underapplied ($4.800 + $60. 18–5A 1.260 + $52. $60.600 12. 52 V-200 400 No. 56 A-100 90 6. 51 V-100 150 No. H.980 $ 72. $106.000 $13.000 Direct Labor 19.016 No. D. F.080 0 0 1.400 4.560 150 8. $220. ($220.120 No.120 $263.000 $ 48.400) 2. $13.000 + $78.500 3. ($74. $60.800.800 10. $109.25 148 38. Materials applied to production in January + indirect materials.480) ** Units in Job No.040 $ 14.100 6. Wages incurred less direct labor applied to production in January.00 78.65 Units Sold Cost of Goods Sold 140 $ 44.000 52.980.869 0 0 32.480 $ 253. From table above and problem.100 + $42.480.400 + $72. January 31 balances: Materials Work in Process 56) Finished Goods Factory Overhead $3.000 + $13.800 $ 60.200 27.400 × 1.646 A.120) G.500 $ 12.480 – $184. C.300 19.000) B.320 Dr. 54 A-200 200 24.961 No.084 3.480) * or ($14.220 + $13.50 192 50.600 12. ($48.800 + $3.480 – $220. ($106.000 $ 16. $184. Job 53 and Job $35.200 $33.000 5.500 Factory Overhead Total Cost Unit Cost $ 15.000 – $72.000 + $110.800.000 $320.800) ($19. 53 V-500 Jan.200* ($10.200 – $60.000 – $106.Prob.100 $260.646. E.834** $3. Quantity No.159 $ 35.680 $ 184.400. 55 V-400 160 18. From table above. $72. $14.800.

..000 $ 1...025 ÷ 56....85 ÷ 54..600 $188.......500 56..... Costs Direct Materials Conversion Total costs for period in Assembly Department.........500) Units in process at end of period..........000 53........45) × 52..............500 – 2.......000 54......000 b........000 units] $103.85 + $3......................... Units in process at beginning of period..500 c............000* 54.... Total units.......... Inventory in process..... Units placed in production during period........ Cost per equivalent unit......500 *54............600 [($1... ending........ Started and completed..............000 4..000 58....................500 52....500 4..... $275.........000 52.. 2... Transferred to finished goods..........45 ......................000 56.500 1.......000 1......................... ** Total equivalent units (from above)........................500 52.Ex.. 2.......500 $ 3. (54...000 4................ **$75..815 d.................. beginning (60% completed).............................. Less units finished during period..... 19–11 a. Whole Units Inventory in process..........210 + $112..............................500 Equivalent Units Direct Materials Conversion 0 52.......

......... Cost of units in ending Work in Process: $4.. Cost of units transferred to Finished Goods: $273.. Inventory in process. and b..080* 71..400 Equivalent Units of Production 70............212 (5.... 19–25 a... ending........400 75........000 units × $3.000 67..... 8....400 75...400 units × 0........ Cost per equivalent unit = Cost per equivalent unit = Total production costs Total equivalent units $277.....000 (70. Total units.....90) .........400 Units to be assigned costs: Transferred to finished goods..... Whole Units Units to be accounted for: Beginning work in process......... 70.212 = $3.90) e. Total........20 × $3.......000 1... Units started during the period..........90 71..080 units d....400 × 0......080 *5.........000 5.....Appendix Ex.20 c...........

.. 594. Finished Goods....600 64....680 1...320 66.........660 d... Work in Process—Making Department.......020 b..........760 2...................... 57................... Factory Overhead—Packing Department......................786 267.......... Finished Goods............. Accumulated Depreciation.860 25.....846 h. Prepaid Insurance.......................... Factory Overhead—Making Department................................ 22....740 42........ Factory Overhead—Packing Department. Work in Process—Making Department....220 76................460 594.......900 ................. Accounts Payable........460 i... Work in Process—Making Department..... 19–1A 1......................... Factory Overhead—Making Department....... Materials....... Work in Process—Packing Department............800 378................ 378.....................800 g......420 6........ Factory Overhead—Making Department.... a........PROBLEMS Prob......480 57...... Factory Overhead—Packing Department...........................600 64.......920 e........646 c.... 122................................ Work in Process—Packing Department........... 584........... Wages Payable.900 286.......... 4..................500 16.846 584................................. 286.......... Cost of Goods Sold..................... Work in Process—Making Department................480 39........ Factory Overhead—Packing Department........800 f......................... Factory Overhead—Making Department....................................... Factory Overhead—Making Department.... Materials... Factory Overhead—Packing Department.020 276............................................... Work in Process—Packing Department........................................060 5.................... 202. Work in Process—Packing Department..................... Work in Process—Packing Department............