281
240) Prahm Inc. has provided the following data for August:
Raw materials, beginning balance
$
19,000
Work in process, beginning balance
$
33,000
Finished Goods, beginning balance
$
52,000
(1)
Raw materials purchased
$
67,000
(2)
Raw materials used in production (all direct materials)
$
78,000
(3)
Direct labor
$
77,000
(4)
Manufacturing overhead costs incurred
$
64,000
(5)
Manufacturing overhead applied
$
71,000
(6)
Cost of units completed and transferred from Work in
Process to Finished Goods
$
255,000
(7)
Any overapplied or underapplied manufacturing overhead is
closed to Cost of Goods Sold
?
(8)
Finished goods are sold
$
294,000
Required:
Complete the following T-accounts by recording the beginning balances and each of the
transactions listed above.
283
241) Easterling Corporation uses a job-order costing system. The following data relate to the just
completed month’s operations.
Beginning balance in Work in Process
$43,000
(1)
Raw materials purchased on account
$172,000
(2)
Direct materials requisitioned for use in production
$125,000
(3)
Indirect materials requisitioned for use in production
$19,000
(4)
Direct labor wages incurred
$78,000
(5)
Indirect labor wages incurred
$102,000
(6)
Depreciation recorded on factory equipment
$36,000
(7)
Additional manufacturing overhead costs incurred
$77,000
(8)
Manufacturing overhead costs applied to jobs
$231,000
(9)
Cost of jobs completed and transferred from Work in Process to
Finished Goods
$402,000
Required:
a. Where appropriate, post the above transactions to the Work in Process and Manufacturing
Overhead T-accounts below.
b. Determine the underapplied or overapplied overhead for the month.
285
242) Eppich Corporation has provided the following data for the most recent month:
Raw materials, beginning balance
$
16,000
Work in process, beginning balance
$
31,000
Finished Goods, beginning balance
$
49,000
Transactions:
(1)
Raw materials purchases
$
80,000
(2)
Raw materials used in production (all direct materials)
$
77,000
(3)
Direct labor
$
51,000
(4)
Manufacturing overhead costs incurred
$
88,000
(5)
Manufacturing overhead applied
$
71,000
(6)
Cost of units completed and transferred from Work in
Process to Finished Goods
$
190,000
(7)
Any overapplied or underapplied manufacturing overhead is
closed to Cost of Goods Sold
?
(8)
Finished goods are sold
$
219,000
Required:
Complete the following T-accounts by recording the beginning balances and each of the
transactions listed above.
287
243) Alberta Corporation uses a job-order costing system. The following data relate to the just
completed month’s operations.
(1) Direct materials requisitioned for use in production, $170,000
(2) Indirect materials requisitioned for use in production, $11,000
(3) Direct labor wages incurred, $105,000
(4) Indirect labor wages incurred, $103,000
(5) Depreciation recorded on factory equipment, $38,000
(6) Additional manufacturing overhead costs incurred, $63,000
(7) Manufacturing overhead costs applied to jobs, $200,000
(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $450,000
Required:
a. Where appropriate, post the above transactions to the Work in Process and Manufacturing
Overhead T-accounts below.
b. Determine the underapplied or overapplied overhead for the month.
289
244) During May, Sharpton Corporation recorded the following:
Raw materials, beginning balance
$
18,000
Work in process, beginning balance
$
32,000
Finished Goods, beginning balance
$
56,000
Transactions:
(1)
Raw materials purchases
$
65,000
(2)
Raw materials used in production (all direct materials)
$
73,000
(3)
Direct labor
$
74,000
(4)
Manufacturing overhead costs incurred
$
72,000
(5)
Manufacturing overhead applied
$
89,000
(6)
Cost of units completed and transferred from Work in Process to
Finished Goods
$
252,000
(7)
Any overapplied or underapplied manufacturing overhead is closed
to Cost of Goods Sold
?
(8)
Finished goods are sold
$
288,000
Required:
Complete the following T-accounts by recording the beginning balances and each of the
transactions listed above.
245) Doogan Corporation uses a job-order costing system and has provided the following partially
completed summary T-accounts for the just completed period:
Required:
Was manufacturing overhead underapplied or overapplied? By how much?
292
246) Shantz Corporation has provided the following data concerning last month’s operations.
Purchases of raw materials
$32,000
Indirect materials included in manufacturing overhead
$5,000
Direct labor cost
$58,000
Manufacturing overhead applied to Work in Process
$99,000
Overapplied overhead
$2,000
Beginning
Ending
Raw materials inventory
$12,000
$16,000
Work in process inventory
$48,000
$53,000
Finished goods inventory
$41,000
$47,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
a. Prepare a Schedule of Cost of Goods Manufactured for the month.
b. Prepare a Schedule of Cost of Goods Sold for the month.
247) Ellithorpe Corporation has provided the following data concerning last month’s operations.
Cost of goods manufactured
$160,000
Underapplied overhead
$5,000
Beginning finished goods inventory
$32,000
Ending finished goods inventory
$44,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Determine the adjusted cost of goods sold for the month.
Beginning finished goods inventory
$32,000
Add: Cost of goods manufactured
160,000
Cost of goods available for sale
192,000
Deduct: Ending finished goods inventory
Unadjusted cost of goods sold
148,000
Deduct: Overapplied overhead
Add: Underapplied overhead
Adjusted cost of goods sold
$153,000