Homework Answers
a. & c.
| Balance Sheet | Income Statement | |||||||||||||||||
| Assets | = | Equity | ||||||||||||||||
| Transaction | Cash | + | Raw M. | + | MOH | + | WIP | + | F. Goods | = | C. Stk. | + | Ret. Ear. | Rev. | - | Exp. | = | Net Inc. |
| CS issued | 60000 | + | NA | + | NA | + | NA | + | NA | = | 60000 | + | NA | NA | - | NA | = | NA |
| Purchase of RM | -14000 | + | 14000 | + | NA | + | NA | + | NA | = | NA | + | NA | NA | - | NA | = | NA |
| DM used | NA | + | -12800 | + | NA | + | 12800 | + | NA | = | NA | + | NA | NA | - | NA | = | NA |
| DL used | -18000 | + | NA | + | NA | + | 18000 | + | NA | = | NA | + | NA | NA | - | NA | = | NA |
| MOH applied | NA | + | NA | + | -10800 | + | 10800 | + | NA | = | NA | + | NA | NA | - | NA | = | NA |
| Jobs completed | NA | + | NA | + | NA | + | -29200 | + | 29200 | = | NA | + | NA | NA | - | NA | = | NA |
| Jobs sold | 20000 | + | NA | + | NA | + | NA | + | NA | = | NA | + | 20000 | 20000 | - | NA | = | 20000 |
| Cost of goods sold | NA | + | NA | + | NA | + | NA | + | -12400 | = | NA | + | -12400 | NA | - | 12400 | = | -12400 |
| S&A exp. | -800 | + | NA | + | NA | + | NA | + | NA | = | NA | + | -800 | NA | - | 800 | = | -800 |
| Actual MOH | -11300 | + | NA | + | 11300 | + | NA | + | NA | = | NA | + | NA | NA | - | NA | = | NA |
| Under-applied MOH | NA | + | NA | + | -500 | + | NA | + | NA | = | NA | + | -500 | NA | - | 500 | = | -500 |
| Bal. | 35900 | + | 1200 | + | 0 | + | 12400 | + | 16800 | = | 60000 | + | 6300 | 20000 | - | 13700 | = | 6300 |
Working:
| Job 1 | Job 2 | Job 3 | Total | |
| DM | 2800 | 4000 | 6000 | 12800 |
| DL | 6000 | 8000 | 4000 | 18000 |
| MOH | 3600 | 4800 | 2400 | 10800 |
| Total $ | 12400 | 16800 | 12400 | 41600 |
b.
| Work in process balance: | $ 12,400 | |
| Unfinished job | Job 1 | $ 12,400 |
| Finished goods balance: | $ 16,800 | |
| Completed job unsold | Job 2 | $ 16,800 |
d.
| Schedule of Cost of Goods Manufactured and Sold | ||
| Direct materials: | ||
| Beginning raw materials inventory | 0 | |
| Add: Purchase of raw materials | 14000 | |
| Total raw materials available | 14000 | |
| Less: Ending raw materials inventory | 1200 | |
| Materials used in production | 12800 | |
| Direct labor | 18000 | |
| Manufacturing overheads | 10800 | |
| Total manufacturing costs incurred | 41600 | |
| Add: Beginning work in process inventory | 0 | |
| Total cost of work in process inventory | 41600 | |
| Less: Ending work in process inventory | 12400 | |
| Cost of goods manufactured $ | 29200 | |
| Add: Beginning finished goods inventory | 0 | |
| Cost of goods available for sale | 29200 | |
| Less: Ending finished goods inventory | 16800 | |
| Cost of goods sold $ | 12400 | |
| Add: Manufacturing overheads underapplied | 500 | |
| Adjusted cost of goods sold $ | 12900 | |
Note: The COGM is $29200 and not $29700 as mentioned. Kindly check. The difference of $500 is on account of the underapplied overhead which is adjusted to the COGS as it is insignificant. For any clarifications, kindly post under comments section.
| Income Statement | |
| Sales revenue | 20000 |
| Cost of goods sold | 12900 |
| Gross margin | 7100 |
| Selling and administrative expense | 800 |
| Net income $ | 6300 |
| Balance Sheet | |
| Assets | |
| Cash | 35900 |
| Raw materials inventory | 1200 |
| Work in process inventory | 12400 |
| Finished goods inventory | 16800 |
| Total assets | 66300 |
| Liabilities and Stockholders' Equity | |
| Common stock | 60000 |
| Retained earnings | 6300 |
| Total liabilities and stockholders' equity | 66300 |
Add Answer to:
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Exercise 2-3
A job order cost sheet for Ryan Company is shown below.
Job No. 92
For 2,000 Units
Date
Direct
Materials
Direct
Labor
Manufacturing
Overhead
Beg. bal. Jan. 1
5,200
6,000
4,200
8
6,000
12
10,000
7,500
25
2,700
27
4,000
3,000
13,900
20,000
14,700
Cost of completed job:
Direct materials
$13,900
Direct labor
20,000
Manufacturing overhead
14,700
Total cost
$48,600
Unit cost ($48,600 ÷ 2,000)
$24.30
(a) On the basis of the foregoing data, answer the following
questions....
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Using this information:Answer the following, Please explain briefly. A job order cost sheet for Ryan Company...
Using this information:Answer the following, Please
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Exercise 2-3
A job order cost sheet for Ryan Company is shown below.
Job No. 92
For 2,000 Units
Date
Direct
Materials
Direct
Labor
Manufacturing
Overhead
Beg. bal. Jan. 1
5,200
6,000
4,200
8
6,000
12
10,000
7,500
25
2,700
27
4,000
3,000
13,900
20,000
14,700
Cost of completed job:
Direct materials
$13,900
Direct labor
20,000
Manufacturing overhead
14,700
Total cost
$48,600
Unit cost ($48,600 ÷ 2,000)
$24.30
(a) On the basis of the foregoing data, answer the following
questions....
Page 512 LO 11-1, 11-2, 11-3 Exercise 11-14A Product cost flow and financial statements Loveland Manufacturing Company was started on January 1, Year 1. The company was affected by the following events during its first year of operation 1. Acquired $2,400 cash from the issue of common stock. 2. Paid $720 cash for direct raw materials. 3. Transferred $480 of direct raw materials to work in process. 4. Paid production employees $720 cash. 5. Paid $360 cash for manufacturing overhead...
Using this information:Answer the following, Please
explain briefly.
A job order cost sheet for Ryan Company is shown below. Job No. 92 Direct Materials Date For 2,000 Units Manufacturing Overhead Direct Labor Beg. bal. Jan. 1 6,000 4,200 6,700 6,000 6,000 4,500 2,500 3,000 4,000 16,000 15,200 11,700 Cost of completed job: Direct materials Direct labor Manufacturing overhead Total cost Unit cost ($42,900 2,000) $15,200 16,000 11,700 $42,900 $21.45 (a) On the basis of the foregoing data, answer the following...
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