Exercise 15-4 (15 minutes)
1.
Rate = = = 130%
2.
Direct materials……………….……………………………………..….…………... $15,350
Direct labor………………..……………….………………..……..…….…………... 3,200
Exercise 15-5 (20 minutes)
2. Total cost of job in process (given)………….……………………………….…..$ 50,000
Less materials cost of job in process (given)……….…………..……….…. (30,000)
Exercise 15-6 (15 minutes)
1. Raw Materials Inventory……………………….………….…….76,200
2. Work in Process Inventory………………..……………….…..48,000
3. Work in Process Inventory………………..……………….…..15,350
4. Work in Process Inventory………………..……………….…..18,420
Estimated overhead costs
Estimated direct labor
$747,500
$575,000
Exercise 15-7 (30 minutes)
1. Cost of direct materials used
Beginning raw materials inventory…………….……………….…………….$ 43,000
Plus purchases……………………………….………………………………….…… 210,000
Raw materials available……………..……………….………………….………..253,000
2. Cost of direct labor used
Total factory payroll…………..……………..………………….………….………$ 345,000
3. Cost of goods manufactured
Beginning work in process inventory…………….………………….……..$ 10,200
Plus direct materials……………..………………………………….………….…. 186,000
Plus direct labor…………………………….……………………..….………….…. 265,000
Exercise 15-7 (continued)
4. Cost of goods sold
Beginning finished goods inventory……………..………………………….$ 63,000
Plus cost of goods manufactured……………….…….………….………….625,400
5. Gross profit
Sales……………..………………………………..……………………….………….….$1,400,000
6. Actual overhead incurred
Indirect materials…………………………………………………..…………………$ 15,000
Indirect labor……………….…………………………………………………………..80,000
Other overhead costs…………………………………….…….………….……… 120,000
Exercise 15-8 (10 minutes)
1. Raw Materials Inventory………………………..……….………210,000
2. Work in Process Inventory……….………………..…….…….186,000
To assign direct materials to jobs.
3. Factory Overhead……….………………….……………………...15,000
Exercise 15-9 (10 minutes)
1. Work in Process Inventory……….………………..…….…….265,000
2. Factory Overhead……….………………….……………………...80,000
3. Factory Payroll Payable…………………….………………..….345,000
Exercise 15-10 (10 minutes)
1. Factory Overhead………………..……………..………………….120,000
2. Work in Process Inventory……….………………..…….…….185,500
Exercise 15-11 (10 minutes)
Cost of Goods Sold…………………………………………..……29,500
Factory Overhead………….……………..……………..…… 29,500
Exercise 15-12 (15 minutes)
Factory Overhead………………..……………..………………….3,200
Exercise 15-13 (25 minutes)
a. Raw Materials Inventory……………………….………….…….90,000
Accounts Payable…………………..…….…….…………... 90,000
To record materials purchases.
d. Factory Overhead………………..……………..………………….11,475
Cash…………………………………..………………………….... 11,475
To record other factory overhead paid.
e. Work in Process Inventory………………..……………….…..47,500
Factory Overhead………….……………..……………..…… 47,500
To apply overhead to jobs at the rate of 125% of
direct labor cost.
f. Finished Goods Inventory……………….…………..…………56,800
Work in Process Inventory…………..……….…….……. 56,800
To record jobs completed.
Exercise 15-14 (35 minutes)
1. Predetermined overhead rate
Estimated overhead costs………………….……………………….…………$750,000
2. & 3.
Factory Overhead
Incurred……….…………...830,000 Applied*………………………….……………..…….…….…822,000
4.
Dec. 31 Cost of Goods Sold………………………..………………………8,000
Exercise 15-15 (25 minutes)
1. Predetermined overhead rate
Estimated overhead costs………….……………….………………….…….$1,680,000
2. & 3.
Overhead
Incurred……….…………...1,652,000 Applied*…………………………….…………………..….….1,662,500
4.
Dec. 31 Factory Overhead………………..……………….………….…….10,500
Exercise 15-16 (30 minutes)
1. Overhead rate = Total overhead costs / Total direct labor costs
2.
Total cost of work in process inventory……….………………..… $ 71,000
Deduct: Direct labor………………..……………..…………..……….…. (20,000)
3.
Total cost of finished goods inventory…….…….….………….… $490,000
We also know that the total of direct labor costs (X) and factory
overhead costs (0.6X) equals $240,000. Thus, to get the individual