SOLUTION
Chapter 2 Waterways Continuing Problem
WCP2 (a)
JOB COST SHEET
Job Number_______________
Quantity______________
Date Requested____________
Item___________________
Date Completed ____________
Direct
Direct
Manufacturing
Overhead
Date
Materials
Labor
Hours
Rate
Amount
Cost Summary
Direct materials
$
Direct labor
Manufacturing overhead
Total Cost
$
Unit Cost
$
JOB COST SHEET
Job Number_______________
Date Initiated_________________
Date Completed_______________
Item___________________
Direct
Direct
Manufacturing
Overhead
Date
Materials
Labor
Hours
Rate
Amount
Cost Summary
Direct materials
$
Direct labor
Manufacturing overhead
Total Cost
$
Unit Cost
$
Answer (a)
JOB COST SHEET
Job Number J57
Quantity 237 units
Date Requested Dec 2
Date Completed Dec 15, 2016
Item special order parts
Direct
Direct
Manufacturing
Overhead
Date
Materials
Labor
Hours
Rate
Amount
2-Dec
$ 3,374
3-Dec
$ 66
2 1/2
$ 398*
$ 995
8-Dec
706
9-Dec
66
398
1,194
14-Dec
2,306
15-Dec
66
398
1,194
Cost Summary
Direct materials
$ 6,386
Direct labor
198
Manufacturing overhead
3,383
Total Cost
$ 9,967
Unit Cost ($9,967/237 units)
$ 42.05
JOB COST SHEET
Job Number K52
Quantity 142 units
Date Requested Dec 2
Date Completed Dec 15, 2016
Item special order parts
Direct
Direct
Manufacturing
Overhead
Date
Materials
Labor
Hours
Rate
Amount
2-Dec
$ 1,687
3-Dec
$ 33
2
$ 398*
$ 796
8-Dec
353
9-Dec
2
14-Dec
1,153
15-Dec
2
Cost Summary
$ 3,193
Total Cost
$ 5,680
Unit Cost ($5,680/142 units)
$ 40.00
(b)
GENERAL JOURNAL
DEBIT
CREDIT
12/1
Raw Materials Inventory
53,200
Accounts Payable
53,200
(Purchase of raw materials on account)
12/2
Work in Process Inventory
40,000
Manufacturing Overhead
3,000
Raw Materials Inventory
43,000
(To assign materials to jobs and overhead)
12/3
Work in Process Inventory
99
Factory Labor
99
(To assign labor to jobs J57 & K52)
12/3
Work in Process Inventory
1,791
Manufacturing Overhead
1,791
(To assign overhead to jobs J57 & K52)
12/8
Work in Process Inventory
1,059
Raw Materials Inventory
1,059
(To assign materials to jobs J57 & K52)
12/9
Work In Process Inventory
99
Factory Labor
99
(To assign labor to jobs J57 & K52)
12/9
Work in Process Inventory
1,990
1,990
(To assign overhead to jobs J57 & K52)
12/12
Factory Labor
65,000
Cash
65,000
(To record factory labor costs and payment)
12/13
Manufacturing Overhead
9,000
Cash
9,000
(To record payment of factory water bill)
12/14
Work in Process Inventory
3,459
Raw Materials Inventory
3,459
(To assign materials to jobs J57 & K52)
12/2
Work in Process Inventory
5,061
Raw Materials Inventory
5,061
(To assign materials to jobs J57 & K52)
GENERAL JOURNAL
DEBIT
CREDIT
12/15
Work In Process
99
Factory Labor
99
(To assign labor to jobs J57 & K52
12/15
Finished Goods Inventory
15,647
Work in Process Inventory
15,647
(To record completion of jobs J57 & K52)
12/18
Finished Goods Inventory
50,000
Work in Process Inventory
50,000
(To record completion of jobs)
12/21
Manufacturing Overhead
12,000
Cash
12,000
(To record payment of factory electric bill)
12/31
Manufacturing Overhead
36,800
Property Taxes Payable
12,000
Prepaid Insurance
8,800
Accumulated Depreciation
16,000
(To record overhead costs)
Cost of Goods Sold
Manufacturing Overhead*
3,600
(To transfer underapplied overhead to cost of goods sold)
*(d) Since production involved the use of machinery that required minimal labor, using
machine hours as the cost driver for producing the sprinkler heads would more accurately
reflect the overhead costs than would direct labor.
12/15
Work in Process Inventory
Manufacturing Overhead
1,990
(To assign overhead to jobs J57 & K52)