Scribd Logo
Upload

Welcome to Scribd!

  • Job Order Questions

    Uploaded by

    إبراهيم الشيخي
    47 views6 pages
    1. Beatly transferred $270,000 of completed goods out of Work in Process Inventory during January. To calculate cost of goods sold for January, subtract the ending Work in Process Inventory balance ($23,000) from the beginning balance ($21,000) and add the amount transferred out of WIP ($270,000). 2. Finn Manufacturing recorded various transactions in June including purchasing raw materials, transferring materials to production, paying expenses, incurring labor costs, applying manufacturing overhead, completing and transferring goods, and making a sale. 3. For Sardin Company, calculate the May 31 Work in Process Inventory balance by adding costs assigned in May ($15,000 + $39,000 + $

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Beatly transferred $270,000 of completed goods out of Work in Process Inventory during January. To calculate cost of goods sold for January, subtract the ending Work in Process Inventory balance ($23,000) from the beginning balance ($21,000) and add the amount transferred out of WIP ($270,000). 2. Finn Manufacturing recorded various transactions in June including purchasing raw materials, transferring materials to production, paying expenses, incurring labor costs, applying manufacturing overhead, completing and transferring goods, and making a sale. 3. For Sardin Company, calculate the May 31 Work in Process Inventory balance by adding costs assigned in May ($15,000 + $39,000 + $

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    47 views6 pages

    Job Order Questions

    Uploaded by

    إبراهيم الشيخي
    1. Beatly transferred $270,000 of completed goods out of Work in Process Inventory during January. To calculate cost of goods sold for January, subtract the ending Work in Process Inventory balance ($23,000) from the beginning balance ($21,000) and add the amount transferred out of WIP ($270,000). 2. Finn Manufacturing recorded various transactions in June including purchasing raw materials, transferring materials to production, paying expenses, incurring labor costs, applying manufacturing overhead, completing and transferring goods, and making a sale. 3. For Sardin Company, calculate the May 31 Work in Process Inventory balance by adding costs assigned in May ($15,000 + $39,000 + $

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 6

    EXERCISES

    Ex. 161
    The manufacturing operations of Beatly, Inc. had the following inventory balances for the
    month of January:
    January 1 January 31
    Raw Materials $12,000 $13,000
    Work in Process 21,000 23,000
    Finished Goods 14,000 12,000

    Beatly transferred $270,000 of completed goods out of Work in Process Inventory during
    January.

    Instructions
    Compute the cost of goods sold for January.

    Ex. 163
    Finn Manufacturing Company uses a job order cost system and keeps perpetual inventory
    records. Prepare journal entries to record the following transactions during the month of
    June.

    June 1 Purchased raw materials for $20,000 on account.

    8 Raw materials requisitioned by production:


    Direct materials $8,000
    Indirect materials 1,000

    15 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000.

    25 Incurred $108,000 of factory labor.

    25 Time tickets indicated the following:


    Direct labor (7,000 hrs. × $12 per hr.) = $ 84,000
    Indirect labor (3,000 hrs. × $8 per hr.) = 24,000
    $108,000

    25 Applied manufacturing overhead to production based on a predetermined


    overhead rate of $7 per direct labor hour worked.

    28 Goods costing $18,000 were completed in the factory and were transferred to
    finished goods inventory.

    30 Goods costing $15,000 were sold for $20,000 on account.


    Ex. 165
    Sardin Company begins the month of March with $17,000 of Work in Process Inventory from
    Job 324. Information from job cost sheets shows the following additional costs assigned
    during March, April, and May of 2022:
    Manufacturing Costs Assigned
    Job No. March April May
    324 $26,000
    325 20,000 $28,000 $15,000
    326 41,000 11,000
    327 16,000 39,000
    328 34,000 51,000

    Job 324 was completed in March. Jobs 325 and 327 were completed in May, and Job 326
    was completed in April. Jobs are sold during the month after completion. Total revenue for
    jobs sold during the 3-month period is $145,000.
    Ex. 165 (Cont.)
    Instructions
    Calculate the balances of the Work in Process Inventory and Finished Goods Inventory
    accounts at the end of May.
    Ex. 167
    Foster Manufacturing uses a job order cost system. On April 1, the company has Work in
    Process Inventory of $7,600 and two jobs in process: Job No. 221, $3,600, and Job No.
    222, $4,000. During April, a summary of source documents reveals the following:
    For Materials Requisition Slips Labor Time Tickets
    Job No. 221 $1,200 $2,100
    222 1,700 2,200
    223 2,400 2,900
    224 2,600 2,800
    General use 600 400
    Totals $8,500 $10,400

    Foster applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor
    cost. Job No. 221 is completed during the month.

    Instructions
    (a) Prepare summary journal entries to record the raw materials requisitioned, factory labor
    used, the assignment of manufacturing overhead to jobs, and the completion of Job No.
    221.
    (b) Calculate the balance of the Work in Process Inventory account at April 30.
    Ans: N/A, LO: 1, 2, 3, 4, Bloom: AP, Difficulty: Moderate, Min: 10, AACSB: Analytic, AICPA BB: Governance Perspective, AICPA FN:
    Measurement, Analysis, and Interpretation, AICPA PC: Decision Making, IMA: FSA
    Ex. 173
    Watson Manufacturing Company employs a job order cost system and keeps perpetual
    inventory records. The following transactions occurred in the first month of operations:
    1. Direct materials requisitioned during the month:
    Job 101 $20,000
    Job 102 16,000
    Job 103 24,000
    $60,000

    2. Direct labor incurred and charged to jobs during the month was:
    Job 101 $32,000
    Job 102 28,000
    Job 103 20,000
    $80,000

    3. Manufacturing overhead was applied to jobs using a predetermined overhead rate based
    on 75% of direct labor costs.

    4. Actual manufacturing overhead costs incurred during the month amounted to $66,000.

    5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed
    during the month.

    Instructions
    (a) Prepare journal entries to record the above transactions.
    (b) Answer the following questions:
    1. How much manufacturing overhead was applied to Job 103 during the month?
    2. What is the unit cost of Jobs 101 and 103?
    3. What is the balance in Work in Process Inventory at the end of the month?
    4. By what amount was manufacturing overhead was under- or overapplied during the
    month?
    Ex. 174
    Graham Manufacturing is a small manufacturer that uses machine hours as its activity base
    for assigning overhead costs to jobs. The company estimated the following amounts for
    2022 for the company and for Job 62:
    Company Job 62
    Direct materials $60,000 $4,500
    Direct labor $25,000 $2,500
    Manufacturing overhead costs $72,000
    Machine hours 90,000 1,350

    During 2022, the actual machine hours totaled 95,000, and actual overhead costs were
    $71,000.

    Instructions
    (a) Compute the predetermined overhead rate.
    (b) Compute the total manufacturing costs for Job 62.
    (c) How much overhead is over or underapplied for the year for the company? State
    amount and whether it is over- or underapplied.
    (d) If Graham Manufacturing sells Job 62 for $14,000, compute the gross profit.

    Ex. 182
    Fancy Decorating uses a job order costing system to collect the costs of its interior
    decorating business. Each client's consultation is treated as a separate job. Overhead is
    applied to each job based on the number of decorator hours incurred. Listed below are data
    for the current year.

    Estimated overhead $880,000


    Actual overhead $910,000
    Estimated decorator hours 40,000
    Actual decorator hours 41,000

    The company uses Operating Overhead in place of Manufacturing Overhead.

    Instructions
    (a) Compute the predetermined overhead rate.
    (b) Prepare the entry to apply the overhead for the year.
    (c) Determine whether the overhead was under - or overapplied and by what amount.
    Ex. 183
    Martin Company applies manufacturing overhead based on direct labor hours. Information
    concerning manufacturing overhead and labor for the year follows:
    Actual manufacturing overhead $80,000
    Estimated manufacturing overhead $75,000
    Direct labor hours incurred 4,800
    Direct labor hours estimated 5,000

    Instructions
    Compute (a) the predetermined overhead rate and (b) the amount of applied manufacturing
    overhead.

    You might also like