PROBLEM 2-1A (Continued)
(b)&(e) Job Cost Sheets
Job No. 50
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Beg.
Jan.
$20,000
10,000
$30,000
$12,000
5,000
$17,000
*$16,000*
* 7,000*
*$23,000*
Cost of completed job
Direct materials …………………………………………………….. $30,000
Direct labor …………………………………………………………… 17,000
Manufacturing overhead ……………………………………….. 23,000
Total cost ……………………………………………………………………. $70,000
*$5,000 X 140%
Job No. 51
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Jan.
$39,000
$39,000
$25,000
$25,000
**$35,000**
**$35,000**
Cost of completed job
Direct materials …………………………………………………….. $39,000
Direct labor …………………………………………………………… 25,000
Manufacturing overhead ……………………………………….. 35,000
Total cost ……………………………………………………………………. $99,000
**$25,000 X 140%
Job No. 52
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Jan.
$30,000
$20,000
***$28,000***
***$20,000 X 140%
PROBLEM 2-1A (Continued)
Finished Goods Inventory …………………………..…… 169,000
(f) Cost of Goods Sold ………………………………………… 160,000
Finished Goods Inventory
(g)
Finished
Goods Inventory
Beginning balance
Cost of completed jobs 50 and 51
90,000
169,000
160,000
Cost of jobs 49 and 50 sold
Ending balance
99,000
which has not yet been sold.
(h)
Manufacturing Overhead
Actual
72,000
Applied
70,000
2,000
PROBLEM 2-2A
(a)
Work in Process Inventory
1/1 Balance (1) 128,400
Direct materials (2) 131,000
Direct labor (3) 139,000
Manufacturing overhead (4) 166,800
Completed work (5) (c) 386,200
12/31 Balance 179,000
(1)
Job 7640
Job 7641
$ 77,800
50,600
$128,400
(3)
Job 7640
Job 7641
Job 7642
$ 36,000
48,000
55,000
$139,000
(2)
Job 7640
Job 7641
Job 7642
$ 30,000
43,000
58,000
$131,000
(4)
Job 7640
Job 7641
Job 7642
$ 43,200
57,600
66,000
$166,800
(5) (a) Job 7640
Beginning balance …………………………………………. $ 77,800
(b) Job 7641
Beginning balance …………………………………………. $ 50,600
(c) Total cost of completed work
Job 7640 ………………………………………………………. $187,000
PROBLEM 2-2A (Continued)
Work in process balance ……………………………………… $179,000
Unfinished job No. 7642 ………………………………………. $179,000 (a)
(a) Current year’s cost
(b) Actual overhead costs
Incurred on account ………………………………………. $120,000
Indirect materials …………………………………………… 14,000
Applied overhead costs
Job 7640 ……………………………………………………….. $ 43,200
Actual overhead …………………………………………………… $160,000
Manufacturing Overhead ………………………………………. 6,800
(c) Sales revenue (given) …………………………………. $530,000
Cost of goods sold
Add: Job 7638 …………………………………………… $ 87,000
PROBLEM 2-3A
(a)
(i) Raw Materials Inventory …………………………………….. 4,900
Accounts Payable ………………………………………. 4,900
(ii) Work in Process Inventory …………………………..…….. 4,900
Manufacturing Overhead ……………………………………. 1,500
(iii) Finished Goods Inventory ………………………………….. 13,840
Job
Direct
Materials
Direct
Labor
Manufacturing
Overhead*
Total
Costs
Gannon
Rosenthal
Linton
$1,700
1,300
2,200
$1,160
900
1,780
$1,450
1,125
2,225
$ 4,310
3,325
6,205
$13,840
*125% X direct labor amount
Cash …………………………………………………………………. 18,900
PROBLEM 2-3A (Continued)
(b)
Work in Process Inventory
6/1 Balance 5,540
Direct materials 4,900
Direct labor 3,200
Overhead applied 4,000
June Completed work 13,840
6/30 Balance 3,800
(c) Work in Process Inventory ……………………………………………….. $3,800
Job: Koss (Direct materials $2,000 + Direct labor $800 +
(d) STELLAR INC.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2014
Work in process, June 1 …………………………………… $ 5,540
Direct materials used ……………………………………….. $4,900
Direct labor …………………………..…………………………. 3,200
PROBLEM 2-4A
(a) Department D: $1,200,000 ÷ $1,500,000 = 80% of direct labor cost.
(b)
Department
Manufacturing Costs
D
E
K
Direct materials
Direct labor
Overhead applied
Total
$140,000
120,000
96,000
$356,000
*
$126,000
110,000
132,000
$368,000
**
$ 78,000
37,500
78,000
$193,500
***
*$120,000 X 80%
**11,000 X $12.00
***10,400 X $7.50
(c)
Department
Manufacturing Overhead
D
E
K
Incurred
Applied
Under (over) applied
$99,000
96,000
$ 3,000
$124,000
132,000
$ (8,000)
$79,000
78,000
$ 1,000
PROBLEM 2-5A
(a) $5,600 ($16,850 + $7,975 – $19,225).
(b) $36,000 [$9,750 + $15,000 + (75% X $15,000)]. (Given in other data).
(c) $14,950 ($16,850 – $1,900).
(d) $6,600 ($8,800 X 75%).
(e) $12,200 [Given in other data—$3,800 + $4,800 + (75% X $4,800)].
PROBLEM 2-1B
(a) $440,000 ÷ 20,000 direct labor hours = $22 per direct labor hour
(c) Raw Materials Inventory …………………………………….. 45,000
Accounts Payable ………………………………………. 45,000
Factory Labor ……………………………………………………. 33,500
(d) Work in Process Inventory …………………………………. 35,000
Raw Materials Inventory
($5,000 + $17,000 + $13,000) …………………….. 35,000
Work in Process Inventory …………………………………. 24,000
PROBLEM 2-1B (Continued)
(e) Job Cost Sheets
Job No. 25
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Beg.
Jan.
$10,000
5,000
$15,000
$6,000
3,000
$9,000
*$ 9,000*
* 4,400*
*$13,400*
Cost of completed job
Direct materials…………………………………………………….. $15,000
Direct labor …………………………..……………………………… 9,000
Manufacturing overhead ……………………………………….. 13,400
Total cost ……………………………………………………………………. $37,400
*$22 X 200 direct labor hours
Job No. 26
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Jan.
$17,000
$17,000
$12,000
$12,000
**$17,600**
**$17,600**
Cost of completed job
Direct materials…………………………………………………….. $17,000
Direct labor …………………………..……………………………… 12,000
Manufacturing overhead ……………………………………….. 17,600
Total cost ……………………………………………………………………. $46,600
**$22 X 800 direct labor hours
Job No. 27
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Jan.
$13,000
$9,000
***$13,200***
***$22 X 600 direct labor hours