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20-1
SOLUTION
Chapter 20 Waterways Continuing Problem
Answer (a)
JOB COST SHEET
Job Number J57
Quantity 244 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
$ 3,468 (2)
3-Dec
$ 66 (5)
2 1/2
$ 398 (1)
$ 995
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)
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
Raw Materials Inventory
1,200
(To assign materials to jobs J57 & K52)
12/9
Work In Process Inventory
99
Factory Labor
99
(To assign labor to jobs J57 & K52)
Cash
9,000
(To record payment of factory water bill)
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)
Cash
12,000
(To record payment of factory electric bill)
12/31
Manufacturing Overhead
36,800
(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.
