Question

ROBLEMS-SERIES B Job-Order, Process, and Hybrid Costing Systems 575 om 12-13B Joh-order costine Rodman C oration was created on January 1, 2014, when it received a stockholder's contribu- It purchased $10.500 of raw materials and worked on three job orders during about these jobs follow. (Assume all transactions are for cash unless otherwise LO 12-2 pont of $46.000. It the year. Der indicated.) Direct Raw Materials Used Direct Labor Job 1 Job 2 Job 3 Total $4,000 1,800 3,200 $9,000 $ 4,000 4,800 4,480 $13,280 The average wage rat mined overhead rate erage wage rate is $16 per hour. Manufacturing overhead is applied using a predeter- rhead rate of $7.50 per direct labor hour. Jobs I and 3 were completed during the year, and Job I was sold for $13,000. Rodman paid $1.400 were completed during the year, an paid $1,400 for selling and administrative expenses. Actual factory overhead was $6,000. Required Record the preceding events in a horizontal statements model. The first event for 2014 has been recorded as an example. Assets Equity Cash + Raw M. + MOH + WIP F. Goods + = C. Stk. + Ret. Ear. = 46,000 + NA Rev. - Exp. - Net Inc. NA - NA - NA NA + 46,000 + NA + + NA NA Reconcile all subsidiary accounts with their respective control accounts. 6. Record the closing entry for over- or underapplied manufacturing overhead, assuming that the amount is insignificant. 4. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2014.

Answer 1

Cash & Raw M+ MOH + WIP tf Goods -c Stkt Rita 1 46000 + NA NA NA NA = 46000 + NA 235,300 + 10,500+ Nat NAINA = 460OO + 29820 + 1500 + NA +995 +9780 - 16000 + 190 +1950 Job i RM = $4000 Labour - $ 4000 No of hours = $4000 $16 -200 hrs. Manufacturing OH = 250 hu $75/he = $ 1875 Job 2 No of hours - $4800 = 300h $ 16 Manufacturing OH= 300 hs x $7.50/ = $2250 b3 No of hours = $4480 - 280 hrs. $ 16 Manufacturing OH = 280 hes & $7.50 hs - $ 2100

Cash Stocu 16000 Raw Material (10,50D) Direct labour (18280) Klamuaching ott (125) Chers 22.1012100) factory ourhead (6,000) Selling & Administratie (1400) Sales 13000 $21,595 sellings are $27,820 Ret A Earnings sales 13,000 stock @aoMattua isoo (10,500-9000) WIP 860 8850 2250 C1800 +4800 +2100 finished goods 9780 (3,200+4480 ) +2100) 33130 (10,500) - Raw material (13280) labour (6,000) factory OH (1400) Selling & Aam Exp - Retained Earnings 1950 Our applicd OH = $6225-6000 = $225