Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 19
Chapter 19
Job Order Costing
QUESTIONS
1. Factory overhead is not identified with specific units (jobs) or batches (job lots).
Therefore, to assign costs, estimates of the relation between factory overhead cost
2. Several other factors (allocation bases) are possible and reasonable. These common
3. The job order cost sheet captures information on cost and quantity of direct material
4. Each job is assigned a subsidiary ledger account. This account serves as the
“posting account” (accumulates all increases and decreases) during production for
direct material, direct labor, and applied factory overhead. The collection of job cost
5. A debit (increase) to Work in Process Inventory for direct materials, a debit (increase)
6. The materials requisition slip is designed to track the movement of materials from
7. The time ticket is used to record how much time an employee spends on each job.
8. Debits (increases) to factory overhead are the recording of actual overhead costs,
10. This production run should be accounted for as a job lot (batch). Although individual
iPhones could be viewed as individual jobs, the costs of tracking this detailed
11. A predetermined factory overhead rate must be calculated for at least two reasons:
(1) Not all costs are known in advance, yet estimated overhead costs must be applied
12. Each patient in a hospital can be viewed as a “job.” In this case, a job order cost
13. Each of the 30 luxury motorcycles will likely be accounted for as an individual job.
Although similar in many respects, each would have custom features that would
14. Sprint employees can use job cost sheets to accumulate the costs (e.g. materials,
labor, and overhead) used on each job. Managers can use this job cost information
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 19
1101
QUICK STUDIES
Quick Study 19-1 (5 minutes)
Quick Study 19-2 (10 minutes)
Finished Goods Inventory ……………………………………..
10,500
10,500
10,500
10,500
14,900
Quick Study 19-3 (10 minutes)
D
C
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Quick Study 19-4 (15 minutes)
Raw Materials Inventory ………………………………………..
50,000
Cash ………………………………………………………………..
50,000
12,000
Raw Materials Inventory …………………………………..
12,000
32,000
Raw Materials Inventory …………………………………..
32,000
Quick Study 19-5 (10 minutes)
Work in Process Inventory …………………………………….
140,000
Factory Wages Payable ……………………………………
40,000
Factory Wages Payable ……………………………………
Quick Study 19-6 (10 minutes)
Quick Study 19-7 (10 minutes)
Quick Study 19-8 (5 minutes)
Quick Study 19-9 (10 minutes)
Overhead Applied
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Quick Study 19-10 (10 minutes)
1.
JOB COST SHEET
Job 1
Job 2
Job 3
Direct materials ……………………………………………………….
$ 5,000
Direct labor ($50 x 200) ………………………………………………….
Factory overhead ($65 x 200) ……………………………………………
Quick Study 19-11 (15 minutes)
Cost of Goods Sold ……………………………………………….
50,000
Quick Study 19-12 (5 minutes)
Factory Overhead ………………………………………………….
22,000
Quick Study 19-13 (10 minutes)
JOB COST SHEET
Quick Study 19-14 (10 minutes)
Quick Study 19-15 (5 minutes)
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 19
1107
EXERCISES
Exercise 19-1 (10 minutes)
Exercise 19-2 (15 minutes)
JOB COST SHEET: Job 9-1005
Direct materials
Overhead ($1,350 X 110%) …………….
Total cost ……………………………………
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Exercise 19-3 (25 minutes)
1. The cost of direct materials requisitioned in the month equals the total
direct materials costs accumulated on the three jobs less the amount of
direct materials cost assigned to Job 102 in May:
2. Direct labor cost incurred in the month equals the total direct labor
costs accumulated on the three jobs less the amount of direct labor cost
assigned to Job 102 in May:
3. The predetermined overhead rate equals the ratio of the amount of
overhead assigned to jobs divided by the amount of direct labor cost
assigned to them. Since the same rate is used for all jobs started and
completed within a month, the ratio for any one job equals the rate that
was applied. This table shows the ratio for jobs 102 and 104:
4. The cost transferred to finished goods in June equals the total costs of
the two completed jobs for the month, which are Jobs 102 and 103:
b.
8,000
8,000
c.
Work in Process Inventory ……………………………………..
6,400
6,400
d.
16,000
16,000
Accounts Receivable ……………………………………………..
Exercise 19-4 (15 minutes)
1.
Raw Materials Inventory …………………………………………
76,200
2.
48,000
15,350
18,420
Exercise 19-5 (20 minutes)
1.
a.
Work in Process Inventory ……………………………………..
9,500
Raw Materials Inventory ……………………………………
9,500
Record direct materials used.
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Exercise 19-5 (continued)
2. The balance in Work in Process Inventory at the end of July ($6,280)
equals the total cost reported on the job cost sheet for Job 122, the
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Exercise 19-6 (25 minutes)
a.
Raw Materials Inventory …………………………………………
90,000
Accounts Payable …………………………………………….
90,000
36,500
36,500
19,200
19,200
c.
38,000
11,475
11,475
e.
Work in Process Inventory ……………………………………..
47,500
47,500
56,800
56,800
56,800
56,800
Accounts Receivable ……………………………………………..
82,000
82,000
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Exercise 19-7 (30 minutes)
1.
Cost of direct materials used
Beginning raw materials inventory……………………………………………
$ 43,000
Cost of direct materials used ……………………………………………………
2.
Cost of direct labor used
Cost of direct labor used ……………………………………………………….
3.
Cost of goods manufactured
Beginning work in process inventory ……………………………………….
$ 10,200
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Exercise 19-7 (continued)
4.
Cost of goods sold
Beginning finished goods inventory …………………………………………
$ 63,000
Cost of goods sold ……………………………………………………….
$ 652,800
5.
Gross profit
Cost of goods sold ……………………………………………………….
$ 747,200
6.
Actual overhead incurred
$ 15,000
$ 29,500
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Exercise 19-8 (10 minutes)
1.
Raw Materials Inventory …………………………..
2.
3.
Exercise 19-9 (10 minutes)
1.
2.
3.
2.
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Exercise 19-11 (15 minutes)
2.
Direct materials ……………………………………………………………………….
$15,350
Total cost of Job No. 13-56 ………………………………………………………
$22,710
Exercise 19-12 (20 minutes)
2.
Total cost of job in process (given) ………………………………………………
$ 50,000
Less materials cost of job in process (given) …………………………..
Less overhead applied (30,000 x 40%) …………………………………………..
Exercise 19-13 (10 minutes)
Factory Overhead
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Exercise 19-14 (15 minutes)
Factory Overhead – Storm
Exercise 19-15 (35 minutes)
1.
Predetermined overhead rate
2. & 3.
Factory Overhead
Underapplied …………….
4.
Dec. 31
Cost of Goods Sold ………………………………………………..
Exercise 19-16 (25 minutes)
1.
Predetermined overhead rate
2. & 3.
Overhead
4.
Dec. 31
Factory Overhead …………………………………………………..
10,500
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Exercise 19-17 (30 minutes)
2.
Total cost of work in process inventory …………………………..
$ 71,000
Direct materials ………………………………………………………………
3.
Total cost of finished goods inventory …………………………...
$490,000