Problem 19-2A (75 minutes)
Part 1
a.
Dec. 31 Work in Process Inventory…………………………………….28,800
b.
Dec. 31 Work in Process Inventory…………………………………….59,800
c.
Dec. 31 Work in Process Inventory…………………………………….119,600
d.
Dec. 31 Factory Overhead…………………………………………………5,600
e.
Dec. 31 Factory Overhead…………………………………………………8,200
Part 2
Revised Factory Overhead account
Ending balance from trial balance………………………………………$115,000 debit
To close underapplied overhead.
Problem 19-2A (continued)
Part 3
BERGAMO BAY COMPANY
Trial Balance
December 31, 2015
Debit Credit
Cash ………………………………………………………………………$170,000
Accounts receivable……………………………………………….. 75,000
Raw materials inventory*…………………………………………. 45,600
Work in process inventory**…………………………………….. 208,200
* Raw materials inventory
Balance per trial balance…………………………………………………………….$80,000
** Work in process inventory
Job 402 Job 404 Total
Direct materials……………… $ 10,200 $18,600 $ 28,800
Problem 19-2A (continued)
Part 4
BERGAMO BAY COMPANY
Income Statement
For Year Ended December 31, 2015
Sales…………………………………………………………………………………$373,000
Cost of goods sold…………………………………………………………….. (227,200)
BERGAMO BAY COMPANY
Balance Sheet
December 31, 2015
Assets
Cash………………………………………………………………………… $170,000
Accounts receivable………………………………………………….. 75,000
Inventories
Liabilities and equity
Accounts payable……………………………………………………… $ 17,000
Common stock………………………………………………………….. 50,000
Problem 19-2A (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 19-3A (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
b. Work in Process Inventory…………………………………….128,000
c. Factory Overhead…………………………………………………15,000
Problem 19-3A (Continued)
[continued from prior page]
d. Work in Process Inventory…………………………………….102,000
e. Work in Process Inventory…………………………………….177,000
Factory Overhead…………………………………………… 177,000
To apply overhead to jobs
f. Finished Goods Inventory……………………………………..355,100
Work in Process Inventory………………………………. 355,100
To record completion of jobs
g. Accounts Receivable…………………………………………….525,000
Cost of Goods Sold………………………………………………215,700
h. Factory Overhead…………………………………………………149,500
Accum. Depreciation—Factory Building…………… 68,000
Accum. Depreciation—Factory Equipment……….. 36,500
i. Work in Process Inventory…………………………………….27,000
Factory Overhead…………………………………………… 27,000
Problem 19-3A (Continued)
Part 3
GENERAL LEDGER ACCOUNTS
Raw Materials Inventory
(a) 200,000 (b) 147,500
Bal. 52,500
Work in Process Inventory Factory Overhead
(b) 128,000 (f) 355,100 (b) 19,500 (e) 177,000
Finished Goods Inventory Cost of Goods Sold
Part 4
Reports of Job Costs*
Work in Process Inventory
Finished Goods Inventory
Cost of Goods Sold
*Individual totals reconcile with account balances in part 3.
Problem 19-4A (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
c. Overapplied or underapplied overhead determination
Actual overhead cost…………………………………..$1,520,000
Part 2
Problem 19-5A (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
#35 33,750 #1-10 90,000 May — 80% 72,000
#36 12,960
SUMMARY OF COSTS
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