Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 2, Problem 2.3AP
Prepare entries in a
(LO 1, 2, 3, 4, 5), AP
Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference On June 1, 2017, the general ledger for Case Inc. contains the following data.
Subsidiary data for Work in Process Inventory on June 1 are as follows.
During June, raw materials purchased on account were $4,900, and all wages were paid Additional
A summary of materials requisition slips and time tickets for June shows the following.
| Customer Job | Materials Requisition Slips | Time Tickets |
| Rodgers | $ 800 | $ 850 |
| Koss | 2,000 | 800 |
| Stevens | 500 | 360 |
| Linton | 1,300 | 1,200 |
| Rodgers | 300 | 390 |
| Â | 4,900 | 3,600 |
| General use | 1,500 | 1,200 |
| Â | $6,400 | $4,800 |
Overhead was changed to jobs .at the same rate of $1,25 per dollar of direct labor cost. The patios for customers Rodgers. Stevens, and Linton were completed during June and sold for a total of $18,900. Each customer paid in full.
Instructions
(a) Journalize the June transactions (1) for purchase of raw materials,
(b)
(c) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d) Prepare a cost of goods manufactured schedule for June.
(d) Cost of goods manufactured $14,740
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The following information is available for Lock-Tite Company, which produces special-order security products and uses a
job order costing system.
Inventories
Raw materials
Work in process
Finished goods
Activities and information for May
Raw materials purchases (paid with cash)
Factory payroll (paid with cash)
Factory overhead
Indirect materials
Indirect labor
Other overhead costs
Sales (received in cash)
Predetermined overhead rate based on direct labor cost
Compute the following amounts for the month of May using T-accounts.
1. Cost of direct materials used.
2. Cost of direct labor used.
3. Cost of goods manufactured.
4. Cost of goods sold.*
5. Gross profit.
6. Overapplied or underapplied overhead.
*Do not consider any underapplied or overapplied overhead.
Raw Materials (RM)
0
Finished Goods (FG) Inventory
April 30
$42,000
9,300
61,000
LA
May 31
34,000
19,700
33,900
193,000
250,000
8,000
57,500
118,500
1,500,000
55%
Work in Process (WIP)
0
Factory Overhead
This document contains ink, shapes an...
Leni Corporation manufactures rattan
furniture set for export and uses the job
order cost system in accounting for its
cost. You obtained from the corporation's
books and records the following
information for the year ended December
31, 2018:
The work in process inventory on January
1 was 20 % less than the work in process
inventory on December 31
The total manufacturing cost added
during 2018 was P1,350,000 based on
actual direct materials and direct labor
but with manufacturing overhead applied
on actual direct labor pesos.
- The manufacturing overhead applied to
process was 72% of the direct labor
pesos, and it was equal to 25% of the
total manufacturing cost.
- The cost of goods manufactured, also
based on actual direct material, actual
direct labor and applied manufacturing
overhead , was P1,275,000.
Compute for the following:
8. Factory overhead applied
9. Direct labor.
10. Direct materlals used
11work in process December 31, 2018
12. Work…
Overview of general ledger relationships. Estevez Company uses normal costing in its job-costing system. The company produces kitchen cabinets. The beginning balances (December 1) and ending balances (as of December 30) in their inventory accounts are as follows:
Chapter 2 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 2 - (a) Mary Barett is not sure about the difference...Ch. 2 - Prob. 2QCh. 2 - What type of industry is likely to use a job order...Ch. 2 - What type of industry is likely to use a process...Ch. 2 - Your roommate asks your help in understanding the...Ch. 2 - Prob. 6QCh. 2 - What source documents are used in accumulating...Ch. 2 - Entries to Manufacturing Overhead normally are...Ch. 2 - Stan Kaiser is confused about the source documents...Ch. 2 - What is the purpose of a job cost sheet?
Ch. 2 - Indicate the source documents that are used in...Ch. 2 - Explain the purpose and use of a materials...Ch. 2 - Sam Bowden believes actual manufacturing overhead...Ch. 2 - What elements are involved in computing a...Ch. 2 - Prob. 15QCh. 2 - Jane Neff believes that the cost of goods...Ch. 2 - Matt Litkee is confused about under- and...Ch. 2 - At the end of the year, under- or overapplied...Ch. 2 - Dicker Company begins operations on January 1....Ch. 2 - During January, its first month of operations,...Ch. 2 - In January, Dicker Company requisitions raw...Ch. 2 - Factory labor data for Dieker Company is given in...Ch. 2 - Data pertaining to job cost sheets for Dieker...Ch. 2 - Marquis Company estimates that annual...Ch. 2 - Assign manufacturing overhead to production.(LO...Ch. 2 - In March, Stinson Company completes Jobs 10 and...Ch. 2 - Prepare entries for service salaries and wages and...Ch. 2 - At December 31, balances in Manufacturing Overhead...Ch. 2 - During the current month, Wacholz Company incurs...Ch. 2 - Milner Company is working on two job orders. The...Ch. 2 - Washburn Company produces earbuds. During the...Ch. 2 - During the current month, Standard Corporation...Ch. 2 - For Eckstein Company, the predetermined overhead...Ch. 2 - The gross earnings of the factory workers for...Ch. 2 - Stine Company uses a job order cost system. On May...Ch. 2 - A job order cost sheet for Ryan Company is shown...Ch. 2 - Manufacturing cost data for Orlando Company, which...Ch. 2 - Ikerd Company applies manufacturing overhead to...Ch. 2 - Analyze job cost sheet aid prepare entry for...Ch. 2 - Crawford Corporation incurred the following...Ch. 2 - Enos Printing Corp. uses a job order cost system....Ch. 2 - At May 31, 2017, the accounts of Lopez Company...Ch. 2 - Tierney Company begins operations on April 1,...Ch. 2 - The following are the job cost related accounts...Ch. 2 - Determine cost of jobs end ending balance in work...Ch. 2 - Tombert Decorating uses a job order cost system to...Ch. 2 - Lott Company uses a job order cost system and...Ch. 2 - For the year ended December 31, 2017, the job cost...Ch. 2 - Prepare entries in a job order cost system and...Ch. 2 - Agassi Company uses a job order cost system in...Ch. 2 - Phillips Corporations fiscal year ends on November...Ch. 2 - Huegel Hollow Resort has ordered 20 rotomolded...Ch. 2 - Khan Products Company uses a job order cost...Ch. 2 - In the course of routine checking of all journal...Ch. 2 - Communication Activity You are the management...Ch. 2 - Prob. 2.5BYPCh. 2 - Prob. 2.6BYPCh. 2 - Prob. 2.7BYP
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