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Problem 19-2B (Concluded)
Part 4 (Concluded)
CAVALLO MFG.
Balance Sheet
December 31, 2015
Assets
Cash..................................................................... $ 64,000
Accounts receivable........................................... 42,000
Inventories
Raw materials inventory....................................$11,700
Part 5
The $2,100 error would cause the costs for Job 604 to be understated.
Since Job 604 is in process at the end of the period, work in process
Problem 19-3B (70 minutes)
Part 1
JOB COST SHEETS
Job No. 487
Materials.......................$30,000
Job No. 488
Materials.......................$20,000
Job No. 489
Materials.......................$12,000
Job No. 490
Materials.......................$14,000
Job No. 491
Materials.......................$ 4,000
Problem 19-3B (Concluded)
Part 2
a. Raw Materials Inventory...............................................125,000
b. Work in Process Inventory...........................................80,000
c. Factory Overhead.........................................................11,000
d. Work in Process Inventory...........................................68,000
e. Work in Process Inventory...........................................118,000
f. Finished Goods Inventory............................................233,000
Problem 19-3B (Continued)
[continued from prior page]
g. Accounts Receivable....................................................340,000
Cost of Goods Sold......................................................141,000
h. Factory Overhead.........................................................96,000
Accum. Depreciation—Factory Building............... 37,000
i. Work in Process Inventory...........................................18,000
Problem 19-3B (Continued)
Part 3
GENERAL LEDGER ACCOUNTS
Raw Materials Inventory
Work in Process Inventory Factory Overhead
(b) 80,000 (f) 233,000 (b) 12,000 (e) 118,000
Finished Goods Inventory Cost of Goods Sold
Part 4
Reports of Job Costs*
Work in Process Inventory
Job 488........................................ $ 41,000
Finished Goods Inventory
Cost of Goods Sold
*Individual totals reconcile with account balances shown in part 3.
Problem 19-4B (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
Problem 19-5B (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
#223 16,000 #1-10 40,000 June -- 70% 28,000
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
Problem 19-5B (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
1120 200 24,00
0
#20 150 200 30,00
0
270 200 54,00
0
0
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 12,80
0
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
June
Problem 19-5B (Continued)
GENERAL JOURNAL
a. Raw Materials Inventory...............................................41,200
Accounts Payable................................................... 41,200
To record materials purchases ($30,000+$11,200).
d. Work in Process Inventory*.........................................72,000
Factory Overhead.........................................................12,000
e. Finished Goods Inventory............................................93,600
f. Accounts Receivable....................................................290,000
h. Work in Process Inventory*.........................................38,400
Factory Overhead......................................................... 864
i. Work in Process Inventory...........................................50,400
