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