1139
Problem 19-1B (Concluded)
Problem 19-2B (75 minutes)
Part 1
a.
Dec. 31
Work in Process Inventory …………………………..
12,200
Raw Materials Inventory …………………………..
12,200
Factory Wages Payable …………………………..
13,000
c.
Factory Overhead ……………………………………………..
26,000
Raw Materials Inventory …………………………..
e.
Factory Wages Payable …………………………..
1140
Problem 19-2B (Continued)
Part 2
Revised Factory Overhead account
Ending balance from trial balance …………………………………..
$27,000
Debit
Applied to Jobs 603 and 604 …………………………………………..
Additional indirect materials …………………………………………..
Debit
Underapplied overhead …………………………………………………..
$ 6,100
Debit
Dec. 31
Cost of Goods Sold ………………………………………………..
6,100
Part 3
CAVALLO MFG.
Trial Balance
December 31, 2017
Debit
Credit
$ 64,000
1141
Problem 19-2B (Continued)
Part 3 (Concluded)
* Raw materials inventory
Balance per trial balance ……………………………………………………….
$26,000
Part 4
CAVALLO MFG.
Income Statement
For Year Ended December 31, 2017
Sales …………………………………………………………………………..
$ 180,000
1142
Problem 19-2B (Concluded)
Part 4 (Concluded)
CAVALLO MFG.
Balance Sheet
December 31, 2017
Assets
Cash ……………………………………………………….
$ 64,000
Accounts receivable ……………………………………..
42,000
Inventories
Raw materials inventory …………………………..
Work in process inventory …………………………..
Total assets ………………………………………………….
Notes payable ……………………………………………….
Common stock ……………………………………………..
30,000
Retained earnings ($87,000 + $23,900) ……………….
Total 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, work in process
Overhead …………………..
Total cost ………………….
Job No. 488
Materials ……………………
Overhead …………………..
Total cost ………………….
$41,000
Materials ……………………
Total cost ………………….
$87,000
Materials ……………………
Overhead …………………..
Total cost ………………….
Job No. 491
Materials ……………………
Overhead …………………..
Total cost ………………….
Problem 19-3B (70 minutes)
Part 1
JOB COST SHEETS
Job No. 487
Materials ……………………
$30,000
1144
Problem 19-3B (Concluded)
Part 2
a.
Raw Materials Inventory …………………………………………
125,000
b.
c.
d.
e.
118,000
f.
233,000
1145
Problem 19-3B (Continued)
[continued from prior page]
g.
Accounts Receivable ……………………………………………..
340,000
141,000
h.
i.
Work in Process Inventory ……………………………………..
Balance …………………………………..
Job 490 …………………………………..
Balance …………………………………..
Job 487 …………………………………..
Job 489 …………………………………..
Balance …………………………………..
Problem 19-3B (Continued)
Part 3
GENERAL LEDGER ACCOUNTS
Raw Materials Inventory
(a)
125,000
(b)
92,000
Bal.
(f)
233,000
(e)
(i)
Part 4
Reports of Job Costs*
Work in Process Inventory
Job 488 …………………………………..
$ 41,000
Job 491 …………………………………..
10,000
1147
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 ……………………………………………………….
627 ……………………………………………………….
628 ……………………………………………………….
629 ……………………………………………………….
630 ……………………………………………………….
c. Overapplied or underapplied overhead determination
Less applied overhead cost …………………………………………….
Overapplied overhead …………………………………………………….
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
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
1149
Problem 19-5B (Continued)
MATERIALS LEDGER CARD
Item
Material M
Received
Issued
Balance
Date
Receiving
Report
Units
Unit
Price
Total
Price
Requi–
sition
Units
Unit
Price
Total
Price
Units
Unit
Price
Total
Price
MATERIALS LEDGER CARD
Item
Material R
Received
Issued
Balance
Date
Receiving
Report
Units
Unit
Price
Total
Price
Requi–
sition
Units
Unit
Price
Total
Price
Units
Unit
Price
Total
Price
MATERIALS LEDGER CARD
Item
Paint
Received
Issued
Balance
Date
Receiving
Report
Units
Unit
Price
Total
Price
Requi–
sition
Units
Unit
Price
Total
Price
Units
Unit
Price
Total
Price