ACC
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SOLUTIONFORJOURNALREVIEWT2.docxSOLUTION of Q1
|
|
DEBIT $ |
CREDIT $ |
|
A |
|
|
|
Raw materials |
690,000 |
|
|
Accounts payable |
|
690,000 |
|
B |
|
|
|
WIP |
540,000 |
|
|
Man / overhead |
160,000 |
|
|
Raw materials |
|
700,000 |
|
C |
|
|
|
MO |
90000 |
|
|
ACCOUNT PAYABLE |
|
90000 |
|
D |
|
|
|
WIP |
900,000 |
|
|
MO |
230,000 |
|
|
Sales / com expenses |
650,000 |
|
|
Salaries/Wages Payable |
|
1,780,000 |
|
E |
|
|
|
ADVERTISING EXPENSES |
800,000 |
|
|
ACC PAYABLE |
|
800,000 |
|
F |
|
|
|
MO |
525,000 |
|
|
INSURANCE EXPENSES |
175,000 |
|
|
PREPAID EXPENSE |
|
700,000 |
|
G |
|
|
|
MO |
270,000 |
|
|
RENT EXPENSE |
90,000 |
|
|
ACC PAYABLE |
|
360,000 |
|
H |
|
|
|
MO |
23,000 |
|
|
ACC PAYABLE |
|
23,000 |
|
I* |
|
|
|
WIP |
177,600 |
|
|
MO |
|
177,600 |
|
|
|
|
|
J |
|
|
|
FINISHED GOODS |
3,400,000 |
|
|
WIP |
|
3,400,000 |
|
K |
|
|
|
AC REC |
6,000,000 |
|
|
SALES |
|
6,000,000 |
|
COGS |
4,000,000 |
|
|
FINISHED GOODS |
|
4,000,000 |
|
L |
|
|
|
CASH |
5,400,000 |
|
|
AC REC |
|
5,400,000 |
|
M |
|
|
|
AC PAYABLE |
2,500,000 |
|
|
CASH |
|
2,500,000 |
Solution Q2
PR = Budgeted cost / Budgeted activity = 420000 / 34000 = $12.35
Applied cost =PR x actual machine hours= 12.35 x 165 = $2038
Product Cost
DM = 1600
DL = 2400
MO =2038
PC = 6038
Unit cost = PC / Units completed = 6038 / 400 = $15.10
Under-applied by $212 [2038 – 2250]
