Problem 15-2A (concluded)
Part 5
This $5,600 error would cause the costs for Job 404 to be understated.
Since Job 404 is in process at the end of the period, work in process
inventory and total assets would both be understated on the balance sheet.
Problem 15-3A (70 minutes)
Part 1
JOB COST SHEETS
Job No. 136
Job No. 138
Materials………
$ 48,000
Materials………
$ 19,200
Labor…………...
12,000
Labor…………...
37,500
Overhead…..…
24,000
Overhead…..…
75,000
Total cost
……..
$ 84,000
Total cost
……..
$131,700
Job No. 137
Job No. 139
Materials………
$ 32,000
Materials………
$ 22,400
Labor…………...
10,500
Labor…………...
39,000
Overhead…..…
21,000
Overhead…..…
78,000
Total cost
……..
$ 63,500
Total cost
……..
$139,400
Job No. 140
Materials………
$ 6,400
Labor…………...
3,000
Overhead…..…
6,000
Total cost
……..
$ 15,400
Part 2
a. Raw Materials Inventory……………………….….….…….…..200,000
Accounts Payable………………..….……..…….….……... 200,000
To record materials purchases.
Problem 15-3A (Continued)
[continued from prior page]
d. Work in Process Inventory………….…………..….…….…...102,000
Factory Overhead………………..…………………………..….…24,000
Cash……………………………………………..…………………. 126,000
To record direct & indirect labor.
g. Accounts Receivable……………..…………..….…….….…….525,000
Sales………………..………………………………….…….….… 525,000
To record sales on account.
Cost of Goods Sold…………………………………………..…...215,700
Finished Goods Inventory………….…………….…….… 215,700
To record cost of sales ($84,000 + $131,700).
h. Factory Overhead………………..…………………………..….…149,500
Accum. Depreciation—Factory Building............... 68,000
i. Work in Process Inventory………….…………..….…….…...27,000
Problem 15-3A (Continued)
Part 3
GENERAL LEDGER ACCOUNTS
Raw Materials Inventory
(a) 200,000 (b) 147,500
Bal. 52,500
Work in Process Inventory Factory Overhead
Finished Goods Inventory Cost of Goods Sold
(f) 355,100 (g) 215,700 (g) 215,700
Bal. 139,400 Bal. 215,700
Part 4
Reports of Job Costs*
Work in Process Inventory
Job 137……………..…..….….…….…. $ 63,500
Job 140……………..…..….….…….…. 15,400
Balance………………….…………….… $ 78,900
Finished Goods Inventory
*Individual totals reconcile with account balances in part 3.
Problem 15-4A (35 minutes)
Part 1
a. Predetermined overhead rate
b. Overhead costs charged to jobs
Direct Applied
Job No. Labor Overhead (60%)
201…………………………………………….….….…….……$ 604,000 $ 362,400
202…………………………………………….….….…….…… 563,000 337,800
203…………………………………………….….….…….…… 298,000 178,800
c. Overapplied or underapplied overhead determination
Actual overhead cost…………….……………………...$1,520,000
Part 2
Dec. 31 Cost of Goods Sold…………………………………………..…...12,800
Factory Overhead…………..……………………………..….. 12,800
To assign underapplied overhead.
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Solutions Manual, Chapter 15 869
Estimated overhead costs
Estimated direct labor cost
$1,500,000
$2,500,000
$1,500,000
[50 x 2,000 x $25]
Problem 15-5A (80 minutes)
JOB COST SHEET
Customer’s Name Worldwide Company Job No. 102
Direct Materials Direct Labor Overhead Costs Applied
Date
Requisition
Number Amount
Time
Ticket
Number Amount Date Rate Amount
Dir. Labor………………………………………………..
90,000
Overhead………………………………………………...
72,000
Total cost of Job………………………………………
208,710
Total 46,710 Total 90,000
FI N I S H E D
JOB COST SHEET
Customer’s Name Reuben Company Job No. 103
Direct Materials Direct Labor Overhead Costs Applied
Date
Requisition
Number Amount
Time
Ticket
Number Amount Date Rate Amount
SUMMARY OF COSTS
Dir. Materials……………………………………………
Dir. Labor………………………………………………..
Overhead………………………………………………...
______
Total cost of Job………………………………………
.
Total Total
Problem 15-5A (Continued)
MATERIALS LEDGER CARD
Item Material M
Received Issued Balance
Date
Receivin
g Report Unit
s
Unit
Pric
e
Total
Price
Requi–
sition Unit
s
Unit
Pric
e
Total
Price Unit
s
Unit
Pric
e
Total
Price
May
200 250 50,000
0
#37 70 250 17,50
0
245 250 61,250
MATERIALS LEDGER CARD
Item Material R
Received Issued Balance
Date
Receivin
g Report Unit
s
Unit
Pric
e
Total
Price
Requi–
sition Unit
s
Unit
Pric
e
Total
Price Unit
s
Unit
Pric
e
Total
Price
May
1
95 180 17,100
0
#38 38 180 6,840 75 180 13,500
MATERIALS LEDGER CARD
Item Paint
Received Issued Balance
Date
Receivin
g Report Unit
s
Unit
Price
Total
Price
Requi
–sition Unit
s
Unit
Price
Total
Pric
e
Unit
s
Unit
Pric
e
Total
Price
May
1
55 75 4,125
Problem 15-5A (Continued)
GENERAL JOURNAL
a. Raw Materials Inventory……………………….….….…….…..78,700
Accounts Payable………………..….……..…….….……... 78,700
To record materials purchases ($62,500+$16,200).
d. Work in Process Inventory*……………..……………………..155,000
Factory Overhead………………..…………………………..….…102,000
Cash……………………………………………..…………………. 102,000
To record other factory overhead.
e. Finished Goods Inventory……………….………..….…….….208,710
f. Accounts Receivable………………………..…..…….….……..400,000
Sales………………..………………………………….…….….… 400,000
To record sales on account.
Cost of Goods Sold…………………………………………..…...208,710
h. Work in Process Inventory*……………..……………………..71,050
Factory Overhead………………..…………………………..….… 1,125
Raw Materials Inventory……………….…..…….….……. 72,175
To record direct & indirect materials.
*($33,750 + $12,960 + $17,500 + $6,840)
i. Work in Process Inventory……………………..…….…….….124,000
Factory Overhead………….……………………………..….. 124,000
To apply overhead ($72,000 + 52,000).
Problem 15-5A (Continued)
j. The ending balance in the Factory Overhead account is computed as:
Actual Factory Overhead
Miscellaneous overhead………………….…. $102,000
Indirect materials……………………………….. 1,125