1.
Account Titles | Debit | Credit | ||
a. | Raw Materials | $ 230,000 | ||
Accounts Payable | $ 230,000 | |||
b. | Work in Process | $ 215,000 | ||
Raw Materials | $ 215,000 | |||
c. | Manufacturing Overhead | $ 55,250 | =65000*85% | |
Selling and administrative expenses | $ 9,750 | =65000*15% | ||
Accounts Payable | $ 65,000 | |||
d. | Work in Process | $ 260,000 | ||
Manufacturing Overhead | $ 96,000 | |||
Selling and administrative expenses | $ 140,000 | |||
Wages Payable | $ 496,000 | |||
e. | Manufacturing Overhead | $ 60,000 | ||
cash | $ 60,000 | |||
f. | Selling and administrative expenses | $ 142,000 | ||
Cash | $ 142,000 | |||
g. | Manufacturing Overhead | $ 67,500 | =90000*75% | |
Selling and administrative expenses | $ 22,500 | =90000*25% | ||
Accumulated Depreciation | $ 90,000 | |||
h. | Manufacturing Overhead | $ 92,000 | =115000*80% | |
Selling and administrative expenses | $ 23,000 | =115000*20% | ||
Accumulated Depreciation | $ 115,000 | |||
i. | Work in Process | $ 374,550 | =349800/1060*1135 | |
Manufacturing Overhead | $ 374,550 | |||
i. | Finished Goods Inventory | $ 830,000 | ||
Work in Process | $ 830,000 | |||
j. | Accounts Receivable | $ 1,500,000 | =9900*25 | |
Sales Revenue | $ 1,500,000 | |||
Cost of Goods Sold | $ 860,000 | |||
Finished Goods | $ 860,000 |
2.
Raw Material Inventory | Work in Process Inventory | |||||||
Beg Bal | $ 36,000.00 | Beg Bal | $ 27,000.00 | |||||
a. | $ 230,000.00 | $ 215,000.00 | b. | b. | $ 215,000.00 | $ 830,000.00 | j. | |
d. | $ 260,000.00 | |||||||
j. | $ 374,550.00 | |||||||
End Bal | $ 51,000.00 | |||||||
End Bal | $ 46,550.00 | |||||||
Finished Goods Inventory | Manufacturing Overhead | |||||||
Beg Bal | $ 66,000.00 | Beg Bal | ||||||
j. | $ 830,000.00 | $ 860,000.00 | k. | c. | $ 55,250.00 | $ 374,550.00 | j. | |
d. | $ 96,000.00 | |||||||
e. | $ 60,000.00 | |||||||
g. | $ 67,500.00 | |||||||
h. | $ 92,000.00 | |||||||
End Bal | $ 36,000.00 | End Bal | $ 3,800.00 | |||||
Cost of Goods Sold | Selling and administrative expenses | |||||||
Beg Bal | ||||||||
k. | $ 860,000.00 | c. | $ 9,750.00 | |||||
d. | $ 140,000.00 | |||||||
f. | $ 142,000.00 | |||||||
g. | $ 22,500.00 | |||||||
h. | $ 23,000.00 | |||||||
End Bal | $ 860,000.00 | End Bal | $ 337,250.00 | |||||
Sales Revenue | ||||||||
Beg Bal | ||||||||
$ 1,500,000.00 | k. | |||||||
$ 1,500,000.00 | End Bal |
3.
Cost of Goods Manufactured Schedule | ||
Direct Materials | ||
Raw Material Inventory | $ 36,000 | |
Raw Material Purchases | $ 230,000 | |
Total Raw Material available for use | $ 266,000 | |
Less : Raw Material Inventory | $ 51,000 | |
Direct Material Used in production | $ 215,000 | |
Direct Labor | $ 260,000 | |
Manufacturing Overhead applied | $ 374,550 | |
Total Manufacturing Costs | $ 849,550 | |
Beginning Work in process inventory | $ 27,000 | |
$ 876,550 | ||
Less: Ending Work in Process inventory | $ 46,550 | |
Cost of goods manufactured | $ 830,000 |
4A.
Account Titles | Debit | Credit |
Manufacturing Overhead | $ 3,800 | |
Cost of Goods Sold | $ 3,800 |
I.e. ending balance in manufacturing overhead
4B.
Cost of Goods Sold | |
Beginning Finsihed Goods Inventory | $ 66,000.00 |
Add : Cost of Goods manufactured | $ 830,000.00 |
Cost of Goods Available for sale | $ 896,000.00 |
Less : Ending Finsihed Goods Inventory | $ 36,000.00 |
Unadjusted Cost of Goods Sold | $ 860,000.00 |
Under-/Overapplied Overhead | $ -3,800.00 |
Adjusted Cost of Goods Sold | $ 856,200.00 |
5.
Income Statement | ||
Sales Revenue | $ 1,500,000.00 | |
Less Cost of Goods Sold | $ 856,200.00 | |
Gross Profit | $ 643,800.00 | |
Operating Expenses | $ 337,250.00 | |
Net Income | $ 306,550.00 |
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $350,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $357,000 of manufacturing overhead for an estimated allocation base of 1,020 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $350,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor hours. Its predetermined overhead rate was based on a cost formula that estimated $395,600 of manufacturing overhead for an estimated allocation base of 920 direct labor-hours. The following transactions took place during the year a. Raw materials purchased...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $374,000 of manufacturing overhead for an estimated allocation base of 1,100 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $373,700 of manufacturing overhead for an estimated allocation base of 1,010 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year: Raw materials purchased on account,...