Accounting 2 PA1,5,7,12

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PA  1. 

LO 4.1 For each item listed, state whether a job order costing system or process costing system would be best.

A. cereal

B. team uniforms

C. houses

D. beach chairs

E. plastic

F. restaurant-specific pizza boxes

G. sneakers customized with number and colors

PA  5. 

LO 4.5 Complete the information in the cost computations shown here:

Three cost computation charts .Raw Materials chart: Beginning Raw Materials Inventory $342, Minus Purchases 1533 equals Materials available for use ? then subtract Ending Raw Materials Inventory of 321 to get Materials Used in Production ?. Work In Process Inventory chart: Beginning WIP Inventory $932 plus Materials used in production ? plus Direct Labor 1535 plus Overhead Applied ?, equals Manufacturing costs Incurred 22,441. Then subtract Ending WIP Inventory 935 to get Cost of Goods Manufactured ?. Finished Goods Inventory chart: Beginning Finished Goods Inventory of ? plus Cost of Goods Manufactured of ? equals Goods Available for Sale of 25,002. Then subtract Ending Finished Goods Inventory of ? to get Cost of Goods Sold of 21,788.

PA  7. 

LO 4.5 Freeman Furnishings has summarized its data as shown:

Data chart showing; Depreciation of factory building $100,000 Factory real estate taxes 15,000, Factory utility expenses 85,000, Indirect materials 32,000, Indirect labor 25,000, Direct labor cost 85,000, Direct labor hours incurred 23,500, Estimated direct labor hours 24,000, Raw materials purchased 350,000, Raw materials beginning inventory 30,000, Raw materials ending inventory 28,000, Work in Process beginning inventory 51,000, Work in process ending inventory 67,000, Estimated overhead 270,000.

Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

A chart showing Overhead budget $350,000, actual $352,000; Machine hours budget 50,000, 49,000 actual; Direct materials $210,000, and Direct labor $350,000.

A. What is the predetermined overhead rate?

B. How much overhead was applied during the year?

C. Was overhead over- or underapplied, and by what amount?

D. What is the journal entry to dispose of the over- or underapplied overhead?

PA  12. 

LO 4.7 The following data summarize the operations during the year. Prepare a journal entry for each transaction.

A. Purchase of raw materials on account: $3,000

B. Raw materials used by Job 1: $500

C. Raw materials used as indirect materials: $100

D. Direct labor for Job 1: $300

E. Indirect labor incurred: $50

F. Factory utilities incurred on account: $700

G. Adjusting entry for factory depreciation: $250

H. Manufacturing overhead applied as percent of direct labor: 200%

I. Job 1 is transferred to finished goods

J. Job 1 is sold: $3,000

K. Manufacturing overhead is overapplied: $100

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