Student Name:
Class:
1.
Acc #
75,180
75,180 «- Correct!
5.
Acc #
58,800 «- Correct!
18,900
39,900
6.
Acc #
29,400
29,400 «- Correct!
7.
Acc #
52,920
88,200 «- Correct!
8.
For this entry you will need to compute the amounts debited and credited.
30 percent, indirect manufacturing labor, and 10 percent, administrative and marketing costs.
manufacturing plant totaling $45,360.
Paid for utilities, power, equipment maintenance, and other miscellaneous items for the
Payroll
Administrative and Marketing Costs
Manufacturing Overhead
Work-In-Process
Fringe Benefits Payable
Analyzed the Payroll account and determined that 60 percent represented direct labor;
Recognized $29,400 in fringe benefit costs, incurred as a result of the wages paid in (5).
Payroll
This $29,400 was debited to Payroll and credited to Fringe Benefits Payable.
Problem 07-51
Requirement a:
Purchased $75,180 in materials on account.
APEX MANUFACTURING
Materials Inventory
Accounts Payable
McGraw-Hill
Instructor
Payroll Taxes Payable
Payroll
amount, $13,500 was withheld for payroll taxes and credited to payroll taxes payable. The
Incurred wage costs of $42,000, which were debited to payroll, a temporary account. Of this
Cash
information about payroll.
remaining 28,500 was paid to the employees. See transactions (6) and (7) for additional
2.
Acc #
3.
Acc #
75,180
75,180 «- Correct!
4.
Acc #
35,700
35,700 «- Correct!
Issued $35,700 in direct materials to the production department.
Paid for the materials purchased in (1)
Issued $2,100 in supplies from the materials inventory to the production department.
Materials Inventory
Manufacturing Overhead
Materials Inventory
Work-In-Process–Direct Materials
Cash
Accounts Payable
Acc #
45,360
45,360 «- Correct!
Cash
Manufacturing Overhead
92,610
92,610 «- Correct!
24,150
24,150 «- Correct!
Accumulated Depreciation-Property, Plant, and Equipment
Manufacturing Overhead Control
Applied Manufacturing Overhead
1. 75,180$
2. 2,100$
3.
Beginning Ending
77,805$ –$
Finished Goods Inventory
Cost of Goods Sold
17,325 –
Account Balances:
Materials Inventory
Work-In-Process Inventory
APEX MANUFACTURING
Paid for materials purchased in (1).
January transactions:
Purchased materials on account.
Issued supplies from materials inventory to production department.
Percent of overhead applied based on direct labor costs.
Recognized fringe benefit costs as a result of payroll in (5).
Analysis of payroll costs incurred in (5):
Percentage represented by direct labor.
Issued direct materials to production department.
Incurred wage costs:
Paid in cash to employees
Percentage represented by indirect manufacturing labor.
Percentage represented by administrative and marketing.
Paid for utilities, power, equipment maintenance, and other misc. items
for manufacturing plant.
Recognized depreciation on manufacturing property, plant, and equipment.
Withheld for payroll taxes
Student Name:
Class:
(a)
Beginning balance
Transferred out (d)
(b) Direct materials Disaster loss (f)
Step b.
Correct!
Step c.
Computation of Direct Labor
materials purchased. Compute purchases in the shaded area below.
To compute the direct materials added to work-in-process, you will first have to compute
will be identified as correct or incorrect.
computations for the missing data. Only the final items in the Work-in-Process T account above
This is a challenging problem. To keep it challenging you will need to set up your own
in the second Work-in-Process
T Account to find out if you are correct.
TOLEDO FARM IMPLEMENTS
Work-in-Process
McGraw-Hill
Instructor
Problem 07-54
This problem is arranged so that
it can be solved one step at a
time. The T account for Work-
Compute direct materials added to production in the space below.
(c) Direct labor
(e) Overhead applied
the letters a thru e. After you
have successfully computed
those parts are identified with
Work-in-Process
in-Process to the right shows
you what information you need
to solve the problem. Some of
the information is given in the
problem. Most of the information
you will need to compute, and
Step d.
75,000$
107,000$
Correct!
Step e.
Ending balance in Manufacturing Overhead
Less beginning balance in Manufacturing Overhead
Overhead applied during May
Correct!
Step f.
408,028$
Less goods transferred out
Total loss from the Tornado
Labor added
Overhead added
Total debits
172,400$
140,628
Amount transferred to Finished Goods from Work-in-Process
Debits to the Work-in-Process account:
Beginning balance
Materials added
Computation of amount transferred out of Work-in-Process.
Ending balance of Finished Goods
Computation of the loss from the Tornado
Computation of Overapplied Applied during May
Less Beginning balance of Finished Goods
Plus Cost of Goods Sold during May:
98,000$
172,400
86,000$
?
75,000
Additional Information:
Manufacturing overhead through May 31
Cost of goods sold through May 31
Manufacturing section payroll costs last month
Inventories on hand May 31:
Available balances at end of May:
Work-in-process inventory
Finished goods inventory
Materials inventory
Work-in-process inventory, April 30
Given Data P07-54:
Information from April financial statements:
Materials inventory, April 30
TOLEDO FARM IMPLEMENTS
Accounts payable ( materials suppliers), April 30
Cost of goods sold through April 30
Overhead applied through April 30
Withholding and other payroll liabilities, April 30
Finished goods inventory, April 30
Payroll payable, April 30
Manufacturing overhead through April 30
Student Name:
Class:
Labor added in June
Overhead added in June
Final Balance, June 30
Totals, June 1
8,000$ 8,000$
38,400 76,800
Totals, June 30
Final Balance, June 30
Labor added in June
Overhead added in June
Correct!
Labor added in June
Overhead added in June
Final Balance, June 30
6,400$
Overhead
Final Balance
Cost of Goods Sold – Job 62
Correct!
8,000$
Materials
Materials added in June
Materials added in June
Direct Materials
Direct Labor
Manufacturing Overhead
Work-in-Process – Job 63
Cost of Goods Sold – Job 61
Problem 07–57
Use the T accounts provided to determine the information needed for the management report.
Work-in-Process – Job 62
Instructor
McGraw-Hill
CHELSEA HOUSEHOLD RENOVATIONS
Cash or Accounts Payable
Work-in-Process – Job 61
Actual direct material costs for June
Overhead costs for June
Actual direct labor costs for June
12,000$
Materials
If you need space to make computations, the yellow area below is unprotected.
June 30
Direct materials inventories
Finished goods inventories
8,000$
–$
–$
80,000$
8,000$
?
?
?
?
?
Overhead
Job 62
Materials
Labor
Overhead
Materials
Labor
Cost of goods sold (before adjustment for over- or underapplied overhead)
Actual overhead
Job 61
May 31
Direct materials inventories
Finished goods inventories
CHELSEA HOUSEHOLD RENOVATIONS
Information for June:
Given Data P07-57:
Started and completed Job 62
Completed Job 61
Started Job 63
Work-in-process inventory (excluding applied overhead):
May 31: Job 61
Direct materials
Labor (1040 hours X $40)
Percentage each job complete as to labor-hours
Direct materials
Labor (960 hours X $40)
June 30: Job 63