20-1
SOLUTION
Chapter 20 Waterways Continuing Problem
Answer (a)
JOB COST SHEET
Quantity 244 units
Date Requested Dec 2
Date Completed Dec 15
Direct
Direct
Manufacturing
Overhead
Date
Materials
Labor
Hours
Rate
Amount
2-Dec
$ 3,468 (2)
3-Dec
$ 66 (5)
2 1/2
$ 398 (1)
$ 995
8-Dec
9-Dec
Cost Summary
$ 6,668
Total Cost
$ 10,249
Unit Cost ($10,249/244 units)
$42.00
20-2
JOB COST SHEET
Job Number K52
Quantity 142 units
Date Requested Dec 2
Date Completed Dec 15
Item special order parts
Direct
Direct
Manufacturing
Overhead
Date
Materials
Labor
Hours
Rate
Amount
2-Dec
$ 1,734 (2)
3-Dec
$ 33 (5)
2
$ 398 (1)
$ 796
8-Dec
400 (3)
(1) 840,576 2,112
(2) $5,202 X (1/3)
9-Dec
33
2
398
796
1,200 (4)
33
2
398
796
Cost Summary
Direct materials
$ 3,334
Direct labor
99
Manufacturing overhead
2,388
Total Cost
$ 5,821
Unit Cost ($5,821/142 units)
$ 40.99
20-3
(b)
GENERAL JOURNAL
DEBIT
CREDIT
12/1
Raw Materials Inventory
50,320
Accounts Payable
50,320
(Purchase of raw materials on account)
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
Manufacturing Overhead
(To assign overhead to jobs J57 & K52)
* (398 X 4.5)
12/8
Work in Process Inventory
1,200
Raw Materials Inventory
1,200
(To assign materials to jobs J57 & K52)
12/9
Work In Process Inventory
99
Factory Labor
99
12/9
(To assign overhead to jobs J57 & K52)
* (398 x 5)
Factory Labor
64,000
Factory Wages Payable
64,000
(To record factory labor costs and payment)
Manufacturing Overhead
9,000
(To assign labor to jobs J57 & K52)
Cash
9,000
(To record payment of factory water bill)
Work in Process Inventory
Raw Materials Inventory
3,600
12/2
Work in Process Inventory
5,202
Raw Materials Inventory
(To assign materials to jobs J57 & K52)
12/2
Work in Process Inventory
20-4
12/15
Work In Process
99
Factory Labor
99
GENERAL JOURNAL
DEBIT
CREDIT
12/15
Finished Goods Inventory
16,070*
Work in Process Inventory
16,070
(To record completion of jobs J57 & K52)
* ($10,249 + $5,821)
12/18
Finished Goods Inventory
Work in Process Inventory
49,000
(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
Accumulated Depreciation
16,800
(To record overhead costs)
Cost of Goods Sold
3,500
Manufacturing Overhead
(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
(To assign overhead to jobs J57 & K52)