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Title: Problem 19-5A
QA_Ori:
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
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
#37 17,500 #11-30 65,000 May --- 80% 52,000
MATERIALS LEDGER CARD
Item Material M
Received Issued
Date
Receiving
Report Units
Unit
Price
Total
Price
Requi-
sition Units
Unit
Price
Total
Price Units
Unit
Price
May
1
200 250
0
MATERIALS LEDGER CARD
Item Material R
Received Issued
Date
Receiving
Report Units
Unit
Price
Total
Price
Requi-
sition Units
Unit
Price
Total
Price Units
Unit
Price
May
1
95 180
MATERIALS LEDGER CARD
Item Paint
Received Issued
Receiving Unit Total Requi- Unit Total Unit
Date Report Units Price Price sition Units Price Price Units Price
May
1
55 75
5
GENERAL JOURNAL
a. Raw Materials Inventory...................................................78,700
Accounts Payable....................................................... 78,700
To record materials purchases ($62,500+$16,200).
To record completion of jobs.
f. Accounts Receivable........................................................400,000
h. Goods in Process Inventory*............................................71,050
Factory Overhead............................................................. 1,125
i. Goods in Process Inventory*............................................155,000
j. Goods in Process Inventory.............................................124,000
k. The ending balance in the Factory Overhead account is computed as:
Actual Factory Overhead
Miscellaneous overhead............................. $102,000
Title: Problem 19-1B
QA_Ori:
Part 1
Total manufacturing costs and the costs assigned to each job
114 115 116 Sept. Total
From August
Direct materials..................................$ 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.
a. Factory Overhead.............................................................12,000
Cash........................................................................... 12,000
b. Goods in Process Inventory.............................................350,000
Raw Materials Inventory............................................. 350,000
To assign direct materials to jobs.
c. Finished Goods Inventory................................................500,000
d. Cost of Goods Sold..........................................................186,000
e. Cash.................................................................................380,000
f. Factory Overhead*...........................................................3,000
Part 3
TAVELLA COMPANY
Manufacturing Statement
For Month Ended September 30
Direct materials used............................................................ $350,000
Direct labor used................................................................... 218,000
Factory overhead
*Alternatively, overapplied overhead can be listed among the overhead items.
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
Part 5
Overhead is overapplied by $3,000, meaning that individual jobs or batches are
over-costed. Thus, profits at the job (and batch) level are understated.
QA_Edit:
Title: Problem 19-2B
QA_Ori:
Part 1
a.
Dec. 31 Goods in Process Inventory.............................................12,200
b.
Dec. 31 Goods in Process Inventory.............................................13,000
c.
Dec. 31 Goods in Process Inventory.............................................26,000
d.
Dec. 31 Factory Overhead.............................................................2,100
e.
Dec. 31 Factory Overhead.............................................................3,000
Part 2
Revised Factory Overhead account
Ending balance from trial balance..............................................$27,000 Debit
Dec. 31 Cost of Goods Sold..........................................................6,100
Part 3
SWISHER COMPANY
Trial Balance
December 31, 2013
Debit Credit
Cash ................................................................................$ 48,000
Accounts receivable......................................................... 42,000
Raw materials inventory*................................................. 11,700
* Raw materials inventory
** Goods in process inventory
Job 603 Job 604 Total
Part 4
SWISHER COMPANY
Income Statement
For Year Ended December 31, 2013
Sales......................................................................................$ 180,000
SWISHER COMPANY
Balance Sheet
December 31, 2013
Assets
Cash....................................................................... $ 48,000
Liabilities and equity
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, goods in process inventory and
