Question

The University of Delaware Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). The following data (in thousands) pertain to 2017: (Click the icon to view the data.) Read the requirements. Requirement 3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated. Post entries (1) through (11) to the accounts below, then calculate the ending balance in each account. The beginning balances have been entered, now enter the apppropriate amounts into the T-accounts from the journal entries. (For accounts with a $0 balance leave the balance line blank.) Review the journal entries from requirement 2. Work-in-Process Manufacturing Materials Control Control Overhead Control Bal. 140 || | Bal. 65 Bal. Bal. Bal. L | Bal. Bal. Bal. Bal. L Finished Goods Manufacturing

I only need requirements 3 & 4, thank you!

Answer 1

3.

Materials Control
Beg.	140	Consumed	870
Purchases	840
End.	110
Work in Process Control
Beg.	65	Cost of Goods Manufactured	4,140
Direct materials	760
Direct labor	1,310
Manufacturing overhead ( 1,310 * 190 % )	2,489
End.	484
Finished Goods Control
Beg.	550		4,010
Cost of Goods Manufactured	4,140
End.	680
Cost of Goods Sold
Finished Goods Control	4,010	Manufacturing Overhead Over-applied	419
Adjusted balance	3,591
Manufacturing Overhead Control
Indirect materials	110	Applied to Production	2,489
Indirect labor	980
Accumulated Depreciation	470
Miscellaneous	510
Cost of Goods Sold	419
	2,489		2,489

4. Gross Profit = Revenues - Adjusted Cost of Goods Sold = $ 8,700 - $ 3,591 = $ 5,109

Gross profit rate = $ 5,109 / $ 8,700 * 100 = 58.72 %

Based on the gross profit ratio, it must be said that University of Delaware Press has performed well in 2017.