Assignment

Question 1

During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5,320 on account, factory labor $7,980 of which $5,380 relates to factory wages payable and $2,600 relates to payroll taxes payable, and utilities payable $2,430. Prepare separate journal entries for each type of manufacturing cost.  (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Jan.31
31
31

Question 2

Marquis Company estimates that annual manufacturing overhead costs will be $890,000. Estimated annual operating activity bases are direct labor cost $414,000, direct labor hours 44,300, and machine hours 108,600. Compute the predetermined overhead rate for each activity base.

Overhead rate per direct labor cost  (Round answers to 2 decimal places, e.g. 110.10%.)			%
Overhead rate per direct labor hour  (Round answers to 2 decimal places, e.g. $10.50.)		$
Overhead rate per machine hour  (Round answers to 2 decimal places, e.g. $10.50.)		$

Question 3

During the first quarter, Roland Company incurs the following direct labor costs: January $53,800, February $47,600, and March $68,000. For each month, prepare the entry to assign overhead to production using a predetermined rate of 80% of direct labor cost.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 31
Feb. 28
Mar. 31

Question 4

In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $22,870 and Job 11 $37,480. On March 31, Job 10 is sold to the customer for $52,930 in cash. Journalize the entries for the completion of the two jobs and the sale of Job 10.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.
	(To record the completion of the two jobs)
2.
	(To record the sale Job 10)
3.
	(To record the cost of the job sold)

Question 5

At December 31, balances in Manufacturing Overhead are Shimeca Company—debit $2,251, Garcia Company—credit $1,092. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Shimeca Company
Dec. 31
Garcia Company
Dec. 31

Question 6

Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same.

		Case A		Case B		Case C
Direct materials used		$	(a)		$93,000			$73,000
Direct labor		52,500			144,700				(h)
Manufacturing overhead applied		44,625				(d)			(i)
Total manufacturing costs		154,800				(e)		221,300
Work in process 1/1/14			(b)		15,800			19,100
Total cost of work in process		206,100				(f)			(j)
Work in process 12/31/14			(c)		16,000				(k)
Cost of goods manufactured		194,000				(g)		230,900

Question 7

Torre Corporation incurred the following transactions.

1.		Purchased raw materials on account $46,770.
2.		Raw Materials of $40,410 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,180 was classified as indirect materials.
3.		Factory labor costs incurred were $60,470, of which $51,380 pertained to factory wages payable and $9,090 pertained to employer payroll taxes payable.
4.		Time tickets indicated that $51,880 was direct labor and $8,590 was indirect labor.
5.		Manufacturing overhead costs incurred on account were $83,450.
6.		Depreciation on the company’s office building was $8,380.
7.		Manufacturing overhead was applied at the rate of 160% of direct labor cost.
8.		Goods costing $95,470 were completed and transferred to finished goods.
9.		Finished goods costing $76,590 to manufacture were sold on account for $112,590.

Journalize the transactions.  (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
	(To record the sale)
	(To record the cost of the sale)

Question 8

Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $ 24,600 , direct labor $ 14,760 , and manufacturing overhead $ 19,680 . As of January 1, Job No. 49 had been completed at a cost of $ 110,700  and was part of finished goods inventory. There was a $ 18,450  balance in the Raw Materials Inventory account. During the month of January, Deglman Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $ 150,060  and $ 194,340 , respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $ 110,700  on account.
2.		Incurred factory labor costs of $ 86,100 . Of this amount $ 19,680  related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $ 20,910 ; indirect labor $ 24,600 ; depreciation expense on equipment $ 23,370 ; and various other manufacturing overhead costs on account $ 19,680 .
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$ 12,300		$ 6,150
51		47,970		30,750
52		36,900		24,600