Various - 1-16

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Exercise 15-9 Journal entries for labor L.A. P2 The following information is available for Lock-Dolvn Company, which produces special-order security products and uses a job order cost accounting system.

April 3i) May 31 lnr,entories

Rawmaterials $41,001) $ 47,000 Goods in process 10,701) 22,000 Finished goods 59,001) 30,600

Activties and information for May Raw materials purchases (paid with cash) 190,000 Factory payroll (paid with cash) 415,000 Factory orerhead

lndirect materials 12,O0O lndirect labor 75,000 Other owrhead costs 103,500

Sales (receircd in cash) 1,270,000 Predetermined owrhead rate based on direct labor cost 65%

1. Factory payroll costs in cash. 2. Direct labor usage. 3. Jnd;rect labor usage.

Prepare joumal entries forthe abo\,e e\,ents forthe month of May. (Orilit the '"$" sign in your rosponse.)

Erents General Joumal Debit Credit 1. 415,000

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Worksheet

Fxerclse 15-9 Joumal entriesfor labor L.a. P2

Exercise 15-4 Analysis of cost flows L.O. C2, P1 , P2, P3 As of the end of June, the job cost sheets at Racing Wheels, lnc., show the following total costs accumulated on three custom jobs.

Job 102 Job 103 Job 1O4 Direct materials $ 31,000 $ 65,000 $ 49,000 Direct labolt4,000 25,400 45,000 Owrhead 6,580 11,938 21,150

Job 1O2 was started in production in May and the following costs w€'e assigned to it in May: direct materials, $11,000; direct labor, $3,300; and or,erhead, $1,551. Jobs 1l)3 and 104 are started in June. Overhead cost is applied with a predetemined rate based on direct lal)or cost. Jobs 102 and 103 are fnished in June, and Job 104 is expected to be finished in July. No rarrr materials are used indirectly in June. Using this information, answer the following questions. (Assum:) this company's predetemined orerhead rate did not change across these months).

1. What is the cost of the raw materials requisitioned in June for each (f the three jobs? iomii the "$" sign in your respons.e,)

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2121113 Assignn€nt Print View Job 102 $ Job 103 $ Job 104 $

2. How much direct labor cost is incuned during June for each of the three jobs? {omit the ',$" sign in y*ur resn:anse.)

Job 102 $ Job 103 $ Job 104 $

3. what predetermined or.rerhead rate is used during June? {omit the "yJ'sign in yoirr response.}

Predetermined o\erhead rate yo

4. How much total cost is transfened to finished goods during Jun€r? {Omit the ""g" sign in your response.)

Total transfened cost $

View Hint #1

\ rorksheet

Exercise15-4Anatsr$oFcoslforysL.O.C2,P1,P2, |? ,r .,' e P3 -, a,,

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€xercr'se 1 5-15 Overhead rate calculation, allocatian, and analysis L.A. p3 Red Wing Company applies factory orcrhead based on direct labor costs. The company incuned the following costs during 2011: direct materials costs, $636,500; direct labcr costs, 91,400,000; and fuctory or,erhead costs applied, $588,000.

1. Determine the company's predetermined o\,erhead rate for year 201'1. {Omit the "Yo" sign in your response.)

Predetermined o\erhead rate %

2. lnthe Goods in Process ln\€ntory accountfor year2A11, the ending balance is $53,000 which includes $21,000 in direct labor cost, determine the direct material cost. {Omii ti.:e

.'$.. sign in your response.}

Direct materials costs $

3. ln the Finished coods ln\entory account for year 2O11, the ending balilnce is $337,420 which includes $137,42O in direct material costs, determine the direct labor costs anrJ overhead costs. iRound your intermediate calculationsand final ansrersto the nearesf dollal amount. Omit the "'$.'s;ign in yaur response.)

Direct labor cost $ Facl9ry overheq! co9!s . I

Worksheel

Exercise ar Overhead rate calculation. aflocatien. and annlysis L.Q. P3 : - ,k

Exercise 15-11 Adjusting factory overhead L.O. P4 The following information is a\ailable for Lock-Down Company, which produces special-order security products and uses a job order cost accounting syslem.

April 30 May 31

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Beginning goods in Process (From March) $

For APril

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lnvenlories Raw materials Goods in process Finished goods

Actir,,ities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory or,erhead

lndirect materials lndirect labor Other o\,erhead costs

Sales (recei\ied in cash) Predetermined orerhead rate based on direct labor cosl

Assignmrril PrintVieur

$ 39,000 $ 9,000 11,200 20,000 66,000 38,000

189,000 420,OO0

13,000 73,000 95,000

1,21 0,000 65%

Prepare the ioumal entry to allocate (close) orerapplied or underapplied c'\,erhead to Cost of Goods Sold

{Omit the "$" sign in your response.}

General Joumal

Cost ofqoods sold l.

Worksheet

E"":r;ise 15-1 1 ACjusting faciary averheaC L.a. p4

Problem 1 5-1A Production costs computed and recorded; repoLts prep,tred L.O. C2, P1 ' P2' P3, P4 [The fottowing information applies to the questions displayed below.]

Winfey Co.'s March 31 inlentory of raw materials is $150,000. Raw malerials purchases in April are $400,000, and factory payroll cost in April is $235,000. Or,ertread costs incuned in April are: indirect materials, $26,000; indirect labor, $15,000; tuctory rent, $19,000; factory ltilities, $14,000; and hctory equipment depreciation, $63,000. The predetermined o\.erhead rate is 60% of direct labor cost. Job 306 is

sold for $350,000 cash in Apdl. Costs of the three iobs worked on in April follt:rw'

Job 306 Job 307 Job 308 Balances on March 31

Direct materials Direct labor Applied owrhead

Costs during April Direct materials Direct labor Applied orcrhead

Status on April 30

Debit Credit

$ '10,000 $ 16,000 17,000 15,000 '10,200 9,000

105,000 23,000

180,000 $ 115,000 57,000 1,10,000

Finished (sold) Finished (unsold) ln process

Section Break

Prcb lem 1 5-1 A ProCuctian costs cornpuled and {ecorded: repofts prepared L.O. C?, P1 , P2, P3, P4

Prablem 15-14 Part 1 Required: 1. Determine ihe total of each production cost incuned for Aprff (direct {alnr, direct materials, and applied

o\,erhead), and the total cost assigned to each job (including the balal'ces ftom March 31). {Leave no

cellsblank-trecertaintoenter"'0"wheleverrequired.Omitthe $"dgninyourrespsnse.)

. -I -':-.;;,t.,, ,_^.^ ,d rnls for

307 308 APril Total

$$$

306

412

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Problem 15-1A Fart 2 a. Materials purchases (on credit), factory payroll (paid in cash), anr:. actual or,erhead costs including

indirect materials and indirect labor. (Factory rent and utilities are paid in cash.) b. Assignmeni of direct materials, direct labor, and applied overhead costs to the Goods in Process

lnr€ntory. c. Transfer of Jobs 306 and 307 to the Finished Goods lnr,entory. d. Cost ofgoods sold forJob 306. e. Revenue ftom the sale of Job 306. f. Assignment of any underapplied or o\erapplied or.erhead to the G:st of Goods Sold account. (The

amount is not material.)

2. Prcpate joumal entries forthe month of April to record the above tra.tsactions. (Omit the "g" sign in your response,)

General Journal Debit Credit To record materials purchases.m ffi

To record factory payroll.

ffi ffi

To record indirect materials.

ffi ffi

To record indirect labor.

ffi ffi

To record factory rent.

ffi ffi

To record factory utilities.

ffi ffi

To record depreciation for factory equipment.

ffi ffi

b. To assign direct materials to jobs. ffi ffi

To assign direct labor to jobs-

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Direct materials

Direct labor

Applied or,erhead

Total costs added in April

Totalcosts $ $ $ $

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Worksheet

Problem 15-1A Part 3

Workshaet

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ffi ffi

To apply olerhead to jobs.

ffi ffi

c. To record jobs completed.

ffi ffi

To record sale ofjob.

ffi ffi

To assign Owr/Underapplied o\€rhead.

ffi ffi

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ffi ffi

To record cost of sale of iob.

3. Prepare a manufacturing statement forApril (use a single line for direct materials and shorrv the details of or,efiead cost.) (Amounts to be deducted sfrould indicated with a minus sign. Omit the "$" dgn in your response.)

',YJH:|J":'"HH"For Month Ended April 30

Total manufacturing c6ts

Total cost of goods in process

Cost of goods manufactured

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i^Problern 15-1APar13

After examining rarious files, the manager identifies the following six souttle documents that need to be processed to b'ring the accounting records up to date'

Materials requisition 21-3010: $4,500 direct materials to Job 402 Materials requisilion 21-3011: $7,300 direct materials to Job 404 Materials requisition 21-3012: $1,800 indirect materials Labor time ticket 6052: $7,000 direct labor to Job 402 Labortime ticket 6053: $3,000 direct laborto Job 404 Labor time ticket 6054: $5,000 indirect labor

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Problem 15-1 A Part 4 4.1 Compute gross profit forApril. {Omitthe "$" sign in your response,}

Gross profit $

4.2 Show how to present the in\,entories on the April 30 balance sh(:et. {Orfiit the '"$" sign in y**r response.)

ln\rentories

Raw materials $ Goods in process (Job 308)

Finished goods (Job 307)

Total in\entories

ProblemlS-2ASaurcedacuments,iournalentries,overhead,andfinancialrepoltsL.O. P1,P2.P3,P4 [The foilowing information applies to the quesfions displayed below.]

Thai Bay's computer system generated the following trial balance on Deceinber 31, 2011. The company's manager knows something is wrong with the trial balance because it does rot show any balance for Goods in Process ln\,entory but does show balances for the Factory Payroll and Fa,:tory Overhead accounts.

Debt Credit Cash $ 47,000 Accounts recei\able 41,000 Raw materials in\,entory 25,500 Goods in process in\entory 0 Finished goods inr,entory 12,000 Prepaid rent 4,000 Accounts payable $ 10,800 Notes payable 13,800 Common stock 40,000 Retained eamings 93,000 Sales 162,900 Cost ofgoods sold 116,000 Factory payroll 15,000 Factory or,erhead 25,000 Operating expenses 35,000

Totals $320,500 $320,500

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10.

Job6 402 and 4M are the only units in pmcess at year-end. The direct labor cost.

Section Break Problem 15-2ASource

overhead, and financial

Problem 15-2A Part 1 a. DiEct materials costs to Goods in Procqss lnwntory. b. Dircct labor costs to Goods in Process ln€ntory. c. Orerhead costs to Goods in Prccess lnr€ntory. d. lndirect materials costs to the Factory O\erhead account. e. lndirect labor costs to the Factory Orcrhead account.

Required: '1. Prepare joumal entries lo assign the above costs. (Omit the "$" dgn

PrintVienr

o\trhead rate is 30oo/o of

your response,)

Date General Joumal a.ffi

ffi b.ffi

ffi c.ffi

ffi d.ffi

ffi e.ffi

ffi ll9orksheet

Problem 15-2AParl1

Problem 15-24 Part 2 2.1 Detemine the re\ised balance of the Factory O\€rhead account

Determine yrtrether there is any under- or o\erapplied olerhead positive values Omit the '$* sign in your response.)

t(oi"k t" "d".t) f-] $ 2.2 Pr@re the adjusting entry to allocate any oer- or undempplied

assuming the amount is not material. {Omit fie '$' dgn in your

Date General Jomd Dec.31 ffi

ffi

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l lorksheet

Problem 15-2APaft2

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making the entries in part 1. year. (lnput all amounts as

to Cost of Goods Sold, .)

Debit ctedit

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Problem 15-24 Part 3

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Totals

Worksheet

Problem 15-24 Parl3

Problem 15-2A Part 4

ffi ffi ffi ffi ffi

Assets

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3. Prepare a rerised trial balance. (fhe items in the Trial Bal

4.1 Prepare an incorne stat€rnent br year 201 1. {Amounts to be be indicated with minus dgn. Omit the "$" sign in your

THAI BAY COMPANY lncome Statement

For Year Ended December 31, 201 1

4.2 Prcparc a balance sheet as of Decernber 31, 2011. {Be sure to order of their liquidity. Omit the "$'sign in your response.)

THAI BAY COMPANY Balance Sheet

December3l,2011

Assets Liabilities (in order of their liquidity), Equity, blank - be certain to enter "0" wherever required. Omit the sign in your response.)

THAI BAY COMPANY Trial Balance

December 31, 201 I

PrintVialtl

should be grouped as follows; and Expenses Leave no cells

and nel loss amount sfiould

the assets and liabilities in

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lnrentories

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@ Total Assets

Liabilities and Equity

ffi Total Liabilities

ffi

Total Stockholders' Equity

Total Liabilities and Equity

Worksheet

Problem 1 5-2A Pan 4 I

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Problem 15-3A Source documents, iaurnal entries, and accounts in jot'.t order cost accounting L.O. p1 , p2, p3 [The foilowing information applies to the questions disptayed below.]

Westin Watercraft's predetermined or,erhead rate for year 2O11 is 20O% of tJirect labor. lnformation on the company's production activities during May 2011 follows.

a. Purchased raw materials on credit, $200,000. b. Paid $128,9O0 cash for factory wages. c. Paid $15,500 cash to a compuler consultant to reprogram factory equipmt:nt_ d. Materials requisitions record use of the following materials for the month.

Job 136 Job 137 Job 138 Job 139 Job 140

Total direct materials lndirect materials

Total materials used

Job 136 Job 137 Job 138 Job 139 Job 14O

Total direct labor lndirect labor

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$ 49,000 32,000 1 9,200 22,600

6,600

't29,400 21,400

$1 s0,400

e. 'llme tickets record use of the following labor for the month

$ 12,100 '10,800

38,100 39,200 t'^

103,400 25,500

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Total

expircd factory insurance).

Depreciation of factory building Depreciation of iactory equipment Expired factory insurance Accrued pmperty taxes payable

Section Break

13.

Probtem 1 5-3A Part I Required: '1. Prepare a job cost

response,)

Materials

Labor

O\refiead

Total cost

Worksheet

Problem 1 5-3A Paft 1

14. '-;,:- Prablem 15-3A Part 2

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$1 28,900

f. Applied owrhead to Jobs 136, 138, and 139. g. Transfuired Jobs 136, 138, and '139 to Finished Goods. h, Sdd Jobs 136 and 138 on crcdit at a total price of$S35,0O0- i. The company incuned the trlowing orcrhead costs during the

$ 68,000 36,500 12,000 36,500

i. Applied orefiead at month-end to the Goods in Process (Jfu 137 o\,erhead rate of 2ffiYo of direct labd cost.

stleet for each job worked on during the

Job No. 136 Job No. 137 Job No.

2. Prepare joumal entries to record the e\,ents and transactions a response. )

General Joumal

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(credit Prepaid lnsurance fur

140) using the predetermined

lournal enties, cost accounting L.O. Pl , P2,

(Omit the *$"

Jd.!!o. 113! $ - -.

dgn in your

.Job-.ry.o,!4

/'. (Omit the '$" sign in your

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Problem 1 5-3A Pan 2

Problem 15-3A Part 3 3. Prepare T-accounts for each ofthe folloiving general ledger each of which started the month

with a zero balance: Raw Materials lnrentory, Goods in process Factory Payroll, Factory O\erhead, Cost of Goods Sdd. Then

tory, Finished Goods lnentory, the joumal entries to these T-

accounls and detemine the balance d each accourt {Record the sactions in lhe given order. Leave no cells blank - be certain to enter "0,. wherever response.)

Omit the '$" Sgn in your

GENERAL LEDGER ACCOUNTS Raw Materials

Goods in Process

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kdfrt"lGtT-n Itol*;E-eqrlT;l_ry Bal-

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Bal.

Worksheet

Problem 15-3A Patl3

Problem 15-3A Part 4 4. Prepare a repqt showing the total ccst of each job in process

equals the Goods in Process lnrentory account balance. Prepare ln\,entory and Cost of Goods Sold. (Omit the "$" sign in your re

Reports ofJob Costs Goods in Process lnr,entory

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Balance

Finished Goods ln\€ntory

t@1"-6R Balance

Cct of Goods Sdd lidi*t" -Fl Itqicr, tos€tdctTl

Balance

Worksheet

Problem 15-3A Pan 4

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that the sum of their costs reports for Finished Goods

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