Copyright © 2016 Pearson Education, Inc.
25–11
SOLUTIONS TO SET A PROBLEMS
PROBLEM 25A-1
BILLINGS MANUFACTURING
STATEMENT OF COST OF GOODS MANUFACTURED
FOR THE MONTH ENDED OCTOBER 31, 201X
Direct Materials:
Raw Material Inventory, 10/1/1X
$21
0
00
Plus: Net Purchases
128
0
00
Less: Raw Material Inventory, 10/31/1X
22
0
00
Raw Material Used
$127
0
0
0
00
Direct Labor
134
0
0
0
00
Overhead
Indirect Labor
$20
5
0
0
00
Factory Insurance
8
0
0
0
00
Depreciation on Machinery
10
0
0
0
00
Machinery Repairs
5
2
0
0
00
Factory Utilities
6
3
0
0
00
Miscellaneous Factory Costs
2
5
0
0
00
Total Overhead
52
5
0
0
00
Total Manufacturing Costs
313
5
0
0
00
+ Work-in-Process Inventory, 10/1/1X
14
5
0
0
00
– Work-in-Process Inventory, 10/31/1X
18
5
0
0
00
Total Cost of Goods Manufactured
$309
5
0
0
00
PROBLEM 25A-2
BISHOP MANUFACTURING
GENERAL JOURNAL
Date
Account Titles and Description
PR
Dr.
Cr.
Nov.
a. Work-in-Process Inventory
78
0
0
0
00
Raw Material Inventory
78
0
0
0
00
b. Work-in-Process Inventory
62
0
0
0
00
Payroll Payable
62
0
0
0
00
c. Manufacturing Overhead-Control
7
8
0
0
00
Supplies Inventory
7
8
0
0
00
d. Manufacturing Overhead-Control
16
0
0
0
00
Payroll Payable
16
0
0
0
00
e. Manufacturing Overhead-Control
21
2
0
0
00
Rent Expense
3
0
0
0
00
Supervision Expense
7
2
0
0
00
Depreciation Expense
4
8
0
0
00
Electricity Expense
6
2
0
0
00
f. Work-in-Process Inventory
12
4
0
0
00
Manufacturing Overhead-Applied
12
4
0
0
00
g. Finished Goods Inventory
175
0
0
0
00
Work-in-Process Inventory
175
0
0
0
00
h. Cost of Goods Sold
198
0
0
0
00
Finished Goods Inventory
198
0
0
0
00
Accounts Receivable
240
0
0
0
00
Sales
240
0
0
0
00
PROBLEM 25A-3
STAPEL CORPORATION
WORKSHEET
Account Titles
Trial Balance
Adjustments
Dr.
Cr.
Dr.
Cr.
Cash
6
1
5
0
00
Raw Materials Inventory
8
7
0
0
00
Work-in-Process Inventory
7
5
2
0
00
Finished Goods Inventory
10
5
5
0
00
Factory Supplies
3
2
4
0
00
Prepaid Factory Insurance
3
8
0
00
Desks
9
7
0
00
Machinery
57
2
4
0
00
Accum. Depreciation, Machinery
8
0
5
0
00
Accounts Payable
3
1
5
0
00
Common Stock−$10 Par
60
0
0
0
00
Retained Earnings
8
1
2
0
00
Sales
115
1
8
0
00
Raw Materials Purchases
36
9
0
0
00
Direct Labor
23
3
8
0
00
Indirect Labor
9
7
0
0
00
Machinery Repairs
6
8
0
00
Selling Expense
14
6
5
0
00
Administrative Expense
10
0
8
0
00
Factory Supplies Expense
1
2
2
0
00
Depreciation Expense, Machinery
3
1
4
0
00
194
5
0
0
00
194
5
0
0
00
Cost of Goods Manufactured
Net Income
PROBLEM 25A-3 (CONCLUDED)
STAPEL CORPORATION
WORKSHEET
Cost of Goods Manufactured
Income Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
6
5
0
00
8
0
0
00
11
1
9
0
00
11
9
0
00
7
2
0
00
8
3
6
0
00
8
6
0
00
10
5
5
0
00
10
4
0
0
00
10
0
0
00
3
4
0
00
8
0
00
7
0
00
57
4
0
00
8
0
5
0
00
3
1
5
0
00
60
0
0
0
00
8
1
2
0
00
115
1
8
0
00
36
0
0
00
23
3
8
0
00
9
0
0
00
8
0
00
14
6
5
0
00
10
0
8
0
00
1
2
0
00
3
4
0
00
91
2
4
0
00
19
5
5
0
00
71
6
9
0
00
71
6
9
0
00
91
4
0
00
91
2
4
0
00
106
9
7
0
00
125
5
8
0
00
97
3
0
00
79
3
2
0
00
18
6
1
0
00
18
6
1
0
00
125
5
8
0
00
125
5
8
0
00
97
3
0
00
97
9
3
0
00
Copyright © 2016 Pearson Education, Inc.
25–15
SOLUTIONS TO SET B PROBLEMS
PROBLEM 25B-1
PAYSON MANUFACTURING
STATEMENT OF COST OF GOODS MANUFACTURED
FOR THE MONTH ENDED APRIL 30, 201X
Raw Material Inventory, 4/1/1X
$22
0
0
0
00
Plus: Net Purchases
120
0
0
0
00
Less: Raw Material Inventory, 4/30/1X
23
0
0
0
00
Raw Material Used
$119
0
0
0
00
Direct Labor
133
0
0
0
00
Overhead
Indirect Labor
$19
7
0
0
00
Factory Insurance
8
2
0
0
00
Depreciation on Machinery
9
5
0
0
00
Machinery Repairs
4
0
0
0
00
Factory Utilities
5
5
0
0
00
Miscellaneous Factory Costs
2
8
0
0
00
Total Overhead
49
7
0
0
00
Total Manufacturing Costs
301
7
0
0
00
+ Work-in-Process Inventory, 4/1/1X
16
5
0
0
00
− Work-in-Process Inventory, 4/30/1X
22
0
0
0
00
Total Cost of Goods Manufactured
$296
2
0
0
00
PROBLEM 25B-2
QUEEN MANUFACTURING
GENERAL JOURNAL
Date
Account Titles and Description
PR
Dr.
Cr.
Nov.
a. Work-in-Process Inventory
74
0
0
0
00
Raw Material Inventory
74
0
0
0
00
b. Work-in-Process Inventory
60
0
0
0
00
Payroll Payable
60
0
0
0
00
c. Manufacturing Overhead-Control
7
2
0
0
00
Supplies Inventory
7
2
0
0
00
d. Manufacturing Overhead-Control
13
0
0
0
00
Payroll Payable
13
0
0
0
00
e. Manufacturing Overhead-Control
19
9
0
0
00
Rent Expense
2
7
0
0
00
Supervision Expense
7
8
0
0
00
Depreciation Expense
3
4
0
0
00
Electricity Expense
6
0
0
0
00
f. Work-in-Process Inventory
48
0
0
0
00
Manufacturing Overhead-Applied
48
0
0
0
00
g. Finished Goods Inventory
160
0
0
0
00
Work-in-Process Inventory
160
0
0
0
00
h. Cost of Goods Sold
190
0
0
0
00
Finished Goods Inventory
190
0
0
0
00
Accounts Receivable
220
0
0
0
00
Sales
220
0
0
0
00
PROBLEM 25B-3
JENKS CORPORATION
WORKSHEET
Account Titles
Trial Balance
Adjustments
Dr.
Cr.
Dr.
Cr.
Cash
6
2
5
0
00
Raw Materials Inventory
9
0
0
0
00
Work-in-Process Inventory
7
4
8
0
00
Finished Goods Inventory
9
8
9
0
00
Factory Supplies
3
1
5
0
00
Prepaid Factory Insurance
3
7
0
00
Desks
9
2
0
00
Machinery
62
5
0
0
00
Accumulated Depreciation, Machinery
8
3
0
0
00
Accounts Payable
3
1
9
0
00
Common Stock−$10 Par
58
0
0
0
00
Retained Earnings
7
9
6
0
00
Sales
123
0
7
0
00
Raw Materials Purchases
39
4
0
0
00
Direct Labor
21
3
8
0
00
Indirect Labor
10
1
0
0
00
Machinery Repairs
7
5
0
00
Selling Expense
14
7
6
0
00
Administrative Expense
10
0
8
0
00
Factory Supplies Expense
1
7
2
0
00
Depreciation Expense, Machinery
2
7
7
0
00
200
5
2
0
00
200
5
2
0
00
Cost of Goods Manufactured
Net Income
PROBLEM 25B-3 (CONCLUDED)
JENKS CORPORATION
WORKSHEET
Cost of Goods Manufactured
Income Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
6
5
0
00
9
0
0
00
11
5
5
0
00
11
5
0
00
7
8
0
00
8
3
3
0
00
8
3
0
00
9
8
9
0
00
9
7
0
0
00
9
0
0
00
3
5
0
00
7
0
00
2
0
00
62
0
0
00
8
3
0
0
00
3
1
9
0
00
58
0
0
0
00
7
9
6
0
00
123
0
7
0
00
39
0
0
00
21
8
0
00
10
0
0
00
5
0
00
14
7
6
0
00
10
0
8
0
00
1
2
0
00
2
7
0
00
92
0
0
00
19
8
8
0
00
72
7
2
0
00
72
7
2
0
00
92
0
0
00
92
6
0
0
00
107
4
5
0
00
132
7
7
0
00
102
7
0
00
77
4
5
0
00
25
3
2
0
00
25
3
2
0
00
132
7
7
0
00
132
7
7
0
00
102
7
0
00
102
7
7
0
00
FINANCIAL REPORT PROBLEM SOLUTION—2013 Kellogg’s Annual Report