VISUAL #19-1
Tracing Product Costs
Through a Cost Accounting System
Work in Process Finished Goods
(5) Other
factory OH
costs incurred (Cr varies)
19-8
VISUAL #19-2
9/1/xx Completed 9/20/xx
Direct Material Direct Labor Cost
Summary
Mat’l. Payroll Direct Material $ 900.00
Req’n. Summary
No. Amount Dated Dept. Amount Direct Labor 600.00
667 $ 340.00 9/2 A $ 70.00
673 180.00 9/9 A 240.00 Factory Overhead
691 200.00 9/16 B 190.00 (applied at):
623 180.00 9/23 B 100.00
150% of direct
labor cost 900.00
19-9
Education.
Alternate Demo Problem Nineteen
The following information is the Work in Process and Factory Overhead
Accounts for Superior Company:
Work in Process Inventory
Beg Inv. 302,000
Direct Materials 280,000
Direct Labor 120,000
Overhead Applied 96,000
Costs transferred to
Finished Goods Inv. 548,000
End Inv. 250,000
Factory Overhead
Actual Overhead 98,000 96,000 Applied Overhead
Required:
1. Prepare a manufacturing statement for Superior Company for 2015.
2. Prepare the entry to adjust for under or over applied overhead.
19-10
Education.
Solution: Alternate Demo Problem Nineteen
SUPERIOR MANUFACTURING COMPANY
Manufacturing Statement
For Year Ended December 31, 2015
Direct materials used……………………………………. $280,000
Direct labor………………………………………….………. 120,000
Factory Overhead Applied…………………………….. 96,000
Total manufacturing costs…………………………..… 496,000
Adjusting entry for under or over-applied overhead
Factory Overhead
Actual Overhead 98,000 96,000 Applied Overhead
19-11