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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
