Problem 19-5A (Continued)
MATERIALS LEDGER CARD
Item Material M
Received Issued
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
May
1
200 250
0
MATERIALS LEDGER CARD
Item Material R
Received Issued
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
May
1
95 180
MATERIALS LEDGER CARD
Item Paint
Received Issued
Date
Receivin
g Report Unit
s
Unit
Price
Total
Price
Requi
-sition Unit
s
Unit
Price
Total
Pric
e
Unit
s
Unit
Pric
e
May
1
55 75
5
Problem 19-5A (Continued)
GENERAL JOURNAL
a. Raw Materials Inventory………………………………………..78,700
d. Work in Process Inventory*…………………………………..155,000
Factory Overhead…………………………………………………102,000
e. Finished Goods Inventory……………………………………..208,710
f. Accounts Receivable…………………………………………….400,000
Cost of Goods Sold………………………………………………208,710
h. Work in Process Inventory*…………………………………..71,050
i. Work in Process Inventory…………………………………….124,000
Problem 19-5A (Continued)
j. The ending balance in the Factory Overhead account is computed as:
Actual Factory Overhead
Miscellaneous overhead……………………. $102,000
PROBLEM SET B
Problem 19-1B (80 minutes)
Part 1
Total manufacturing costs and the costs assigned to each job
114 115 116 Sept. Total
From August
Direct materials…………………………..$ 14,000 $ 18,000
Direct labor………………………………..18,000 16,000
*Equals 50% of direct labor cost.
Part 2 Journal entries for September
a. Raw Materials Inventory………………………………………..400,000
Accounts Payable…………………………………………… 400,000
To record materials purchases.
Problem 19-1B (Continued)
f. [continued from prior page]
Factory Overhead…………………………………………………20,000
Cash………………………………………………………………. 20,000
To record other factory overhead (rent).
g. Finished Goods Inventory……………………………………..500,000
h. Cost of Goods Sold………………………………………………186,000
i. Cash……………………………………………………………………380,000
j. Factory Overhead*………………………………………………..3,000
*Overhead applied to jobs……………………… $109,000
Overhead incurred
Problem 19-1B (Continued)
Part 3
PEREZ MFG.
Schedule of Cost of Goods Manufactured
For Month Ended September 30
Direct materials used……………………………………………….. $350,000
Direct labor used……………………………………………………… 218,000
Part 4
Gross profit on the income statement for the month ended September 30
Sales………………………………………………………………………………………. $380,000
Presentation of inventories on the September 30 balance sheet
Inventories
* Beginning raw materials inventory…………………………………………………$150,000
Problem 19-1B (Concluded)
Part 5
Problem 19-2B (75 minutes)
Part 1
a.
Dec. 31 Work in Process Inventory…………………………………….12,200
b.
Dec. 31 Work in Process Inventory…………………………………….13,000
c.
Dec. 31 Work in Process Inventory…………………………………….26,000
d.
Dec. 31 Factory Overhead…………………………………………………2,100
e.
Dec. 31 Factory Overhead…………………………………………………3,000
Problem 19-2B (Continued)
Part 2
Revised Factory Overhead account
Ending balance from trial balance…………………………………..$27,000 Debit
Applied to Jobs 603 and 604…………………………………………..(26,000) Credit
Part 3
CAVALLO MFG.
Trial Balance
December 31, 2015
Debit Credit
Cash …………………………………………………………………..$ 64,000
Accounts receivable…………………………………………….. 42,000
Problem 19-2B (Continued)
Part 3 (Concluded)
* Raw materials inventory
Balance per trial balance…………………………………………………………….$26,000
** Work in process inventory
Job 603 Job 604 Total
Direct materials……………… $ 4,600 $ 7,600 $12,200
Part 4
CAVALLO MFG.
Income Statement
For Year Ended December 31, 2015
Sales…………………………………………………………………………$ 180,000
Cost of goods sold……………………………………………………. (111,100)