Question

Question 5 Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2020, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $30,000, direct labour $15,000, and manufacturing overhead $20,000. As of January 1, Job No. 49 had been completed at a cost of $120,000 and was part of finished goods inventory. There was a $25,000 balance in the Raw Materials Inventory account. During the month of January, Bertrand Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $152,000 and $198,000, respectively. The following additional events occurred during the month: 1. Bertrand purchased additional raw materials of $100,000 on account. 2. It incurred factory labour costs of $75,000 of this amount, $18,000 related to employer payroll taxes. 3. It incurred manufacturing overhead costs as follows: indirect materials $18,000, indirect labour $17,000, depreciation expense $14,000, and various other manufacturing overhead costs on account $22,000. 4. It assigned direct materials and direct labour to jobs as follows: Job No. 50 Direct Materials $12,000 42,000 35,000 Direct Labour $7,000 28,000 22,000 51 52

Answer 1

Date	Account title	Debit	Credit
F	Cost of goods sold	$        218,000
	Finished goods inventory		$        218,000
	(To record Finished goods Inventory sold.)
F	Account receivable	$        350,000
	Sales Revenue		$        350,000
	(To record sales revenue.) (152000+198000)

Ending finished goods inventory (Check above table)	$   126,000	Job No. 51
Manufacture overhead (Check above table)	$   (43,000)	Over applied
Over applied because applied overhead is higher than actual overhead cost.

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in J27 X fi B с E F H K L M N o 2 3 Work in progress $ 65,000 $ 4 Finished goods 120,000 Cost of goods sold 5 6 7 Estimated manufacture overhead $ 1,500,000 Divided by: estimated labor cost $ 750,000 Predermined overhead rate 200% Beg. Bal Applied Manufactured overhead Purchase Raw material Direct material c Direct labor Cosi (Direct labor cost * 200%) incurred factory labor Job No. 50 $ 12,000 $ 7,000 $ 14,000 factory depreciation Job No. 51 $ 42,000 $ 28,000 $ 56,000 other overhead costs Job No. 52 $ 35,000 $ 22,000 $ 44,000 indirect material Total $ 89,000 $ 57,000 $ 114,000 indirect labor manufacture cost Raw material factory labor manufactur $ 25,000 $ 100,000 $ 75,000 $ 14,000 $ 22,000 $ (18,000) $ 18,000 $ (17,000) $ 17,000 8 9 10 11 12 13 $ (89,000) 14 Job No. 50 Beg. Jan total $ (57,000) Direct material Direct labor Manufacture overhead $ 30,000 $ 15,000 $ 20,000 $ 12,000 $ 7,000 $ 14,000 $ 42,000 $ 22,000 $ 34,000 Direct material direct labor assigned overhead $ $ $(114,000) $ 89,000 57,000 114,000 15 16 Job completed (98000+126000) 17 18 $ (224,000) $ 224,000 19 Job sold (120000+98000) $ (218,000) $ 218,000 20 Cost of completed Job Direct material Direct labor manufacture overhead Total cost $ $ $ $ 42,000 22,000 34,000 98,000 21 End. Bal $ 18,000 $ 1,000 $ (43,000) $ 101,000 $ 126,000 $ 218,000 22 23 Ending finished goods inventory (Check above table) $ 126,000 Job No. 51 24 25 Job No. 51 Beg. Jan total Direct material Direct labor manufacture overhead $ $ $ 42,000 $ 28,000 $ 56,000 $ 42,000 $ 28,000 $ 56,000 Manufacture overhead (Check above table) $ (43,000) Over applied Over applied because applied overhead is higher than actual overhead cost. 26 27 28 cost of calated lab Sheet113 Sheet114 Activate Windows Go to Settings to activate Windows. LLE Sheet115 Sheet116 Sheet117 Sheet118 Sheet119 Sheet120 READY CIRCULAR REFERENCES + + 100% Search the web and Windows 0 ENG US 09:07 21-09-20

XIA 5 2020-09(2) SEP.xlsx - Microsoft Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW DEVELOPER Sign in 111 : X y B с F G H L M N O D 89,000 $ Total E 57,000 $ K $ (17,000) $ 17,000 11 $ 114,000 indirect labor 12 13 Job No. 50 $ (89,000) 14 $ Direct material direct labor assigned overhead (57,000) Direct material Direct labor Manufacture overhead $ 30,000 $ 15,000 $ 20,000 $ 12,000 $ 7,000 $ 14,000 $ 42,000 $ 22,000 $ 34,000 Beg. Jan total $ $ $(114,000) $ 89,000 57,000 114,000 15 16 17 Job completed (98000+126000) $ (224,000) $ 224,000 18 19 Job sold (120000+98000) $ (218,000) $ 218,000 20 Cost of completed Job Direct material Direct labor manufacture overhead Total cost $ $ $ $ 42,000 22,000 34,000 98,000 21 End. Bal $ 18,000 $ 1,000 $ (43,000 $ 101,000 $ 126,000 $ 218,000 22 23 Ending finished goods inventory (Check above table) $ 126,000 Job No. 51 24 25 Job No. 51 Beg. Jan total Direct material Direct labor manufacture overhead $ $ $ 42,000 $ 28,000 $ 56,000 $ 42,000 $ 28,000 $ 56,000 Manufacture overhead (Check above table) $ (43,000) Over applied Over applied because applied overhead is higher than actual overhead cost. 26 27 28 29 30 31 Cost of completed Job Direct material Direct labor manufacture overhead Total cost $ $ $ $ 42,000 28,000 56,000 126,000 32 33 34 35 Total Job No. 52 Jan Direct material Direct labor manufacture overhead $ 35,000 $ 22,000 $ 44,000 36 $ 101,000 37 Activate Windows Go to Settings to agtivate Windows, Sheet113 Sheet114 Sheet115 Sheet116 Sheet117 Sheet118 Sheet119 Sheet120 READY CIRCULAR REFERENCES + + 100% Search the web and Windows 0 ENG US 09:07 21-09-20