CHAPTER 20
SOLUTIONS TO PROBLEMS: SET B
PROBLEM 20-1B
(a) $440,000 ÷ 20,000 direct labor hours = $22 per direct labor hour
(c) Raw Materials Inventory …………………………………….. 45,000
Accounts Payable ………………………………………. 45,000
(d) Work in Process Inventory …………………………………. 35,000
Raw Materials Inventory
($5,000 + $17,000 + $13,000) …………………….. 35,000
PROBLEM 20-1B (Continued)
(e) Job Cost Sheets
Job No. 25
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Beg.
Jan.
$10,000
5,000
$15,000
$6,000
3,000
$9,000
*$ 9,000*
* 4,400*
*$13,400*
Manufacturing overhead ……………………………………….. 13,400
Total cost ……………………………………………………………………. $37,400
Cost of completed job
Job No. 26
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Jan.
$17,000
$17,000
$12,000
$12,000
**$17,600**
**$17,600**
Direct labor ………………………………………………………….. 12,000
Manufacturing overhead ……………………………………….. 17,600
Total cost ……………………………………………………………………. $46,600
Cost of completed job
Job No. 27
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Jan.
$13,000
$9,000
***$13,200***
PROBLEM 20-1B (Continued)
Finished Goods Inventory ………………………………. 84,000
Work in Process Inventory
($37,400 + $46,600) ………………………………. 84,000
(g)
Work in Process
Beginning balance
Direct materials
25,000
35,000
84,000
Cost of completed jobs 25 and 26
(h)
Manufacturing Overhead
Actual
42,500
Applied
35,200
7,300
PROBLEM 20-2B
(a)
Work in Process Inventory
1/1 Balance (1) 111,000
Completed work (5) (c) 344,000
(1)
Job 7650
$ 63,000
(3)
Job 7650
$ 36,000
$144,000
(2)
Job 7650
Job 7651
$ 32,000
30,000
(4)
Job 7650
Job 7651
$ 45,000
50,000
(5) (a) Job 7650
Beginning balance …………………………………………. $ 63,000
Direct materials ……………………………………………… 32,000
(b) Job 7651
Beginning balance …………………………………………. $ 48,000
Direct materials ……………………………………………… 30,000
(c) Total cost of completed work
Job 7650 ……………………………………………………….. $176,000
PROBLEM 20-2B (Continued)
Work in process balance ……………………………………….. $188,000
Unfinished job No. 7652 …………………………………………. $188,000 (a)
(a) Current year’s cost
Direct materials……………………… $ 35,000
(b) Actual overhead costs
Incurred on account ………………………………………. $135,000
Indirect materials …………………………..………………. 12,000
Applied overhead costs
Job 7650………………………………………………………… $ 45,000
Job 7651………………………………………………………… 50,000
Actual overhead …………………………………………………… $182,500
(c) Sales revenue (given) ………………………………… $490,000
Cost of goods sold
Add: Job 7648 ………………………………………….. $ 93,000
Job 7649 ………………………………………….. 62,000
PROBLEM 20-3B
(a)
(i) Raw Materials Inventory ……………………………………. 4,000
Accounts Payable ……………………………………… 4,000
(ii) Work in Process Inventory ………………………………… 5,300
Manufacturing Overhead …………………………………… 1,500
Raw Materials Inventory …………………………….. 6,800
(iii) Finished Goods Inventory …………………………………. 20,190
Work in Process Inventory …………………………. 20,190
Job
Direct
Materials
Direct
Labor
Manufacturing
Overhead*
Total
Costs
Stiner
$3,000
$2,400
$1,680
$ 7,080
*70% of direct labor amount
Cash ………………………………………………………………… 36,000
PROBLEM 20-3B (Continued)
(b)
Work in Process Inventory
5/1 Balance 12,200
Direct materials 5,300
5/31 Completed work 20,190
(c) Work in Process Inventory ……………………………………………….. $5,810
(d) ROBERT PEREZ COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended May 31, 2017
Work in process, May 1 ……………………………………. $12,200
Direct materials used ………………………………………. $5,300
Direct labor ……………………………………………………… 5,000
PROBLEM 20-4B
(a) Department A: $720,000 ÷ $600,000 = 120% of direct labor cost.
(b)
Department
Manufacturing Costs
A
B
C
Total
$197,600
Direct materials
$ 92,000
$ 86,000
$ 64,000
(c)
Department
Manufacturing Overhead
A
B
C
Under (over) applied
Incurred
$60,000
$60,000
$72,100
PROBLEM 20-5B
(a) $88,900 ($80,000 + $8,900).
(b) $20,500 [($19,000 + $90,400) – $88,900 (See (a))].
(c) $27,200 (Given in Other data—$19,000 + $8,200).
(h) $145,000 (Given in Other data).
(i) $308,750 (Same as (f)).