Managerial Accounting
7th Edition
ISBN: 9781260247886
Author: Wild
Publisher: MCG
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Chapter 2, Problem 7E
Exercise 15-7 Cost flows in a
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order
| April 30 | May 31 | |
| Inventories………………. | ||
| Raw materials…………… | $43,000 | $ 52,000 |
| Work in process………………. | 10,200 | 21,300 |
| Finished goods…………….. | 63,000 | 35,600 |
| Aestivates and information for May | ||
| Raw materials purchases (paid with cash)…………… | 210,000 | |
| Factory payroll (paid with cash)…………….. | 345,000 | |
| Factory overhead | ||
| Indirect materials………….. | 15,000 | |
| Indirect labor………….. | 80,000 | |
| Other (received in cash)……….. | 120,000 | |
| Sales (received in cash)………… | 1,400,000 | |
| Predetermined overhead rate based on direct labor cost………….. | 70% |
Compute the following amounts for the month of May.
- Cost of direct materials used.
- Cost of direct labor used.
- Cost of goods manufactured.
- Cost of goods sold.* *Do not consider any underappllied or overapplied overbead.
- Gross profit.
- Overapplied or underapplied overhead. Check (3) $625,400
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Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3
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[The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate is 200% of direct labor. Information on the company’s production activities during May follows.
Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials for the month.
Job 136
$
49,500
Job 137
33,500
Job 138
19,200
Job 139
22,800
Job 140
6,800
Total direct materials
131,800
Indirect materials
20,500
Total materials used
$
152,300
Paid $15,000 cash to a computer consultant to reprogram factory equipment.
Time tickets record use of the following labor for the month. These wages were paid in cash.
Job 136
$
12,200
Job 137
10,600
Job 138
38,100
Job 139
39,000
Job 140
3,800…
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Exercise 5.19Journal Entries, T-AccountsObjective 4 - Describe the cost flows associated with job-order costing, andprepare the joumal entries.Kapoor Company uses job-order costing. During January, the following datawere reported:a. Materials purchased on account: direct materials, $98,500; indirectmaterials, S14,800.b. Materials issued: direct materials, S82,500; indirect materials, S8,800.c. Labor cost incurred: direct labor, $67,000; indirect labor, $18,750.d. Other manufacturing costs incurred ( all payables), S46,200.e, Overhead is applied on the basis of 110 percent of direct labor cost.f. Wark finished and transferred to Finished Goods Inventory cost$230,000.g. Finished goods costing S215,000 were sold on account for 140 percentof cost.h. Any over- or underapplied overhead is closed to Cost of Goods Sold.Required:1, Prepare journal entries to record these transactions.2. Prepare a T-account for Overhead Control. Post all relevant information to thisaccount. What is the ending…
Chapter 2 Solutions
Managerial Accounting
Ch. 2 - Prob. 1MCQCh. 2 - A company uses direct labor costs to apply...Ch. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - Some companies use labor cost to apply factory...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQ
Ch. 2 - Prob. 6DQCh. 2 - GOOGLE Google uses a “time ticket” for some...Ch. 2 - What events cause debits to be recorded in the...Ch. 2 - GOOGLE Google applies overhead to product costs....Ch. 2 - Prob. 10DQCh. 2 -
11. Why must a company use predetermined...Ch. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 1QSCh. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Job order productions C1 Refer to this chapter’s...Ch. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Exercise 15-13 Analysis of cost flows C2
As of the...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Exercise 15-7 Cost flows in a job order costing...Ch. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Prob. 4PSBCh. 2 - Prob. 5PSBCh. 2 - SERIAL PROBLEM Business Solutions P1 P2 P3 (This...Ch. 2 - Prob. 1GLPCh. 2 - Prob. 1AACh. 2 - Prob. 2AACh. 2 - Apple and Samsung compete in the global...Ch. 2 - ETHICS CHALLENGE P3 BIN 15-3 Assume that your...Ch. 2 - COMMUNICATING IN PRACTICE C1 C2
BTN 15-4 Assume...Ch. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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