Convert Accounting Statements Homework into Excel

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g00073466_green_chadwick_green_4-17__18__22_.pdf

Solution 4-17

Cash

Bal. 8,000 (l) 190,000

(k) 197,000

Bal. 15,000

Raw Materials

Bal. 7,000 (b) 40,000

(a) 45,000

Bal. 12,000

Finished Goods

Bal. 20,000 (j) 120,000

(i) 130,000

Bal. 30,000

Plant and Equipment

Bal. 230,000

Manufacturing Overhead

(b) 8,000 (h)* 60,000 (c) 14,600 (d) 21,000 (e) 18,000 (f) 2,400 Bal. 4,000 (m) 4,000

*$40,000 × 150% = $60,000.

Salaries & Wages Payable

(l) 90,000 (e) 93,400 Bal. 3,400

Accounts Receivable

Bal. 13,000 (k) 197,000

(j) 200,000

Bal. 16,000

Work in Process

Bal. 18,000 (i) 130,000 (b) 32,000 (e) 40,000

(h) 60,000

Bal. 20,000

Prepaid Insurance

Bal. 4,000 (f) 3,000

Bal. 1,000

Accumulated Depreciation

Bal. 42,000 (d) 28,000

Bal. 70,000

Accounts Payable (l) 100,000 Bal. 30,000

(a) 45,000 (c) 14,600

(g) 18,000

Bal. 7,600

Retained Earnings

Bal. 78,000

Capital Stock Sales Commissions Expense

Bal. 150,000 (e) 10,400

Administrative Salaries Expense Depreciation Expense

(e) 25,000 (d) 7,000

Insurance Expense Miscellaneous Expense

(f) 600 (g) 18,000

Cost of Goods Sold Sales

(j) 120,000 (j) 200,000

(m) 4,000

1. Overhead is under applied by $4,000. Entry (m) above records the closing of this under

applied overhead balance to Cost of Goods Sold. 2.

Durham Company Income Statement

For the Year Ended December 31

Sales........................................................... $200,000

Cost of goods sold ($120,000 + $4,000)......... 124,000

Gross margin................................................ 76,000

Selling and administrative expenses:

Depreciation expense................................. $ 7,000

Sales commissions expense......................... 10,400

Administrative salaries expense................... 25,000

Insurance expense..................................... 600

Miscellaneous expense................................ 18,000 61,000

Operating income......................................... $ 15,000

Solution 4-18

1. Williams Chandler Nguyen

Designer-hours........................... 200 80 120

Predetermined overhead rate....... × $45 × $45 × $45

Overhead applied....................... $9,000 $3,600 $5,400

2. Williams Chandler

Direct materials cost................... $ 4,800 $1,800

Direct labor cost....................... 2,400 1,000

Overhead applied....................... 9,000 3,600

Total cost.................................. $16,200 $6,400

Completed Projects..................... 22,600*

Work in Process..................... 22,600* * $16,200 + $6,400

3. The balance in the Work in Process account consists entirely of the costs associated with the

Nguyen project:

Direct materials cost.............................. $ 3,600

Direct labor cost.................................. 1,500

Overhead applied................................... 5,400

Total cost in work in process................... $ 10,500

4. The balance in the Overhead account is determined as follows:

Overhead Actual overhead costs 16,000 18,000 applied overhead costs

2,000 Over applied overhead

As indicated above, the credit balance in the Overhead account is called over applied over- head.

Solution 4-22

1. Research & Documents predetermined overhead rate:

Estimated total overhead costPredetermined =

overhead rate Estimated total amount of the allocation base

$700,000 = =$35 per hour

20,000 hours

Litigation predetermined overhead rate:

Estimated total overhead costPredetermined =

overhead rate Estimated total amount of the allocation base

$320,000 40% of direct = =

attorney cost$800,000 direct attorney cost

2.

Research & Documents overhead applied:

18 hours × $35 per hour ................................................................ $ 630

Litigation overhead applied: $2,100 × 40% ....................................... 840

Total overhead cost ........................................................................... $1,470

3. Total cost of Case 618–3:

Departments

Research & Doc-

uments

Litigation

Total

Materials and supplies .......................... $ 50 $ 30 $ 80

Direct attorney cost .............................. 410 2,100 2,510

Overhead cost applied .......................... 630 840 1,470

Total cost ............................................... $1,090 $2,970 $4,060

4.

Department

Research & Documents

Litigation

Departmental overhead cost incurred ............................ $770,000 $300,000

Departmental overhead cost applied:

23,000 hours × $35 per hour ....................................... 805,000

$725,000 × 40% ........................................................... 290,000

Under applied (or over applied) overhead ..................... $ (35,000) $ 10,000