Problem 15-3B (Concluded)
Part 2
a. Raw Materials Inventory……………………….….….….….….125,000
b. Work in Process Inventory………………..………….….….…80,000
Factory Overhead………………..…………….…………….….…12,000
Raw Materials Inventory…………………..….….….….… 92,000
To record direct & indirect materials.
c. Factory Overhead………………..……………..……………….…11,000
d. Work in Process Inventory………………..………….….….…68,000
Factory Overhead………………..…………….…………….….…16,000
Cash…………………………………..………………………….... 84,000
To record direct & indirect labor.
e. Work in Process Inventory………………..………….….….…118,000
f. Finished Goods Inventory……………….…………..….….….233,000
Problem 15-3B (Continued)
[continued from prior page]
h. Factory Overhead………………..…………….…………….….…96,000
Accum. Depreciation—Factory Building............... 37,000
Accum. Depreciation—Factory Equipment…........ 21,000
i. Work in Process Inventory…………..…………….….….…...18,000
Problem 15-3B (Continued)
Part 3
GENERAL LEDGER ACCOUNTS
Raw Materials Inventory
(a) 125,000 (b) 92,000
Bal. 33,000
Work in Process Inventory Factory Overhead
Finished Goods Inventory Cost of Goods Sold
(f) 233,000 (g) 141,000 (g) 141,000
Bal. 92,000 Bal. 141,000
Part 4
Reports of Job Costs*
Work in Process Inventory
Job 488……………..……..….….….…. $ 41,000
Job 491……………..……..….….….…. 10,000
Balance………………….………………. $ 51,000
Finished Goods Inventory
*Individual totals reconcile with account balances shown in part 3.
Problem 15-4B (35 minutes)
Part 1
a. Predetermined overhead rate
b. Overhead costs charged to jobs
Direct Applied
Job No. Labor Overhead (50%)
625…………………………………………….….….….….…..$ 354,000 $177,000
626…………………………………………….….….….….…..330,000 165,000
c. Overapplied or underapplied overhead determination
Actual overhead cost…………….……………..………………………... $725,000
Part 2
Dec. 31 Factory Overhead………………..…………………………..….…11,500
Cost of Goods Sold…………………………………….….… 11,500
To assign overapplied overhead.
888 Financial and Managerial Accounting, 6th Edition
Problem 15-5B (90 minutes)
JOB COST SHEET
Customer’s Name Encinita Company Job No. 450
Direct Materials Direct Labor Overhead Costs Applied
Date
Requisition
Number Amount
Time
Ticket
Number Amount Date Rate Amount
Dir. Materials……………………………………………
25,600
FI N I S H E D
JOB COST SHEET
Customer’s Name Fargo, Inc. Job No. 451
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 15-5B (Continued)
MATERIALS LEDGER CARD
Item Material M
Received Issued Balance
Date
Receivin
g Report Unit
s
Unit
Price
Total
Price
Requi–
sition Unit
s
Unit
Pric
e
Total
Price Unit
s
Unit
Pric
e
Total
Price
June
0
#225 40 200 8,000 150 200 30,000
MATERIALS LEDGER CARD
Item Material R
Received Issued Balance
Date
Receivin
g Report Unit
s
Unit
Price
Total
Price
Requi–
sition Unit
s
Unit
Pric
e
Total
Price Unit
s
Unit
Pric
e
Total
Price
June
180 160 12,800
#21 70 160 11,20
150 160 24,000
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
890 Financial and Managerial Accounting, 6th Edition
Problem 15-5B (Continued)
GENERAL JOURNAL
a. Raw Materials Inventory………………..……..….….….….….41,200
d. Work in Process Inventory*…………………..………………..72,000
Factory Overhead………………..…………….…………….….…12,000
Cash…………………………………..………………………….... 84,000
To record direct & indirect labor.
*($40,000 + $32,000)
e. Finished Goods Inventory……………………………….….….93,600
Work in Process Inventory……..……………..….….….. 93,600
To record completion of jobs.
f. Accounts Receivable……………………………..….….….…...290,000
Sales………………..………………..…………….….….….…... 290,000
To record sales on account.
h. Work in Process Inventory*…………………..………………..38,400
Factory Overhead………………..…………….…………….….… 864
Raw Materials Inventory…………………..….….….….… 39,264
To record direct & indirect materials.
*($16,000 + $8,000 + $9,600 + $4,800)
i. Work in Process Inventory…………………………….….…...50,400
Problem 15-5B (Continued)
j. The ending balance in Factory Overhead is computed as:
Actual Factory Overhead
Miscellaneous overhead…………... $36,800
Indirect materials……………………… 864
Indirect labor…………….……………… 12,000