Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 3.56BP
Determine flow of costs through accounts (Learning Objectives 2 & 6)
Engine Pro reconditions engines. Its
Requirements
- 1. Compute Engine Pro’s cost of (a) Work in Process Inventory at April 30 and May 31, (b) Finished Goods Inventory at April 30 and May 31, and (c) Cost of Goods Sold for April and May.
- 2. Make summary
journal entries to record the transfer of completed jobs from Work in Process to Finished Goods for April and May. - 3. Record the sale of Job 5 on account for $2,300.
- 4. Compute the gross profit for Job 5. What costs must the gross profit cover?
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ournal Entries and Simple Cost Sheet
Based on the following information. you are réquired to preparc the following
Journal entries
b T-account for work in process
c Simple cost sheets
d. Proof of work in process inventory. end
The Reuben Appliances Corp. started its operations in 200B It uses the job order
costing method and has adopted the voucher system to effectively control the flowof resources.
inventories and payables.
The transactions for the first quarter of the year are as follows:
) Materials purchases on account. P 50.000
2) Materials issued:
Job Order No. B-001
B-002.
P 7,500
13.000
B-003
6.250
3) Indirect materials issued. P 5.250
4) Payroli charges include indirect labor of P7.800. Dircct labor costs are as follows
Job Order No. B-001.
P 5.300
8.000
B-002.
....
B-003.
4.750
5) Factory overhead is charged to production at P3 per machine hour. Machine hours
utilized are as follows:
Job Order No. B-901.....
B-002...
1,200 machine hours
2.050 machi.e hours
1.400 machine hours…
Please see the attachment for data
Question :
Prove the agreement fo Work in Process Inventory with job cost sheets pertaining unfinished work. (hint: use a single T-account for Work In Process Inventory). Calculate each of the following, then post each to the T-account : (1) Beginning Balance, (2) Direct Material, (3) Direct Labor, (4) Manufacturing Overhead, and (5) Completed Jobs
Thanks in advance
1
Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An
inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered
as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory
account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs.
Job 27
Job 33
Highlands Mal1
$16,575
14,300
4,290
Pine Ridge Estates
$ 53,300
26,658
7,995
Materials and equipment
Direct labor
Overhead (applied)
Overhead has been applied at 30 percent of the costs of direct labor.
During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and
billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow.
Job
Materials and equipment
Direct labor (wages…
Chapter 3 Solutions
Managerial Accounting (5th Edition)
Ch. 3 - (Learning Objective 1) For which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 2) Which of the following...Ch. 3 - (Learning Objective 3) The amount of manufacturing...Ch. 3 - (Learning Objective 4) Which of the following is...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - (Learning Objective 5) Assuming the amount of...Ch. 3 - Prob. 8QCCh. 3 - Prob. 9QCCh. 3 - Prob. 10QC
Ch. 3 - Identify product costs, period costs, and product...Ch. 3 - Decide on product costing system (Learning...Ch. 3 - Determine the flow of costs between inventory...Ch. 3 - Understanding key document terms in a job cost...Ch. 3 - Compute a professional billing rate (Learning...Ch. 3 - Prob. 3.6SECh. 3 - Continuation of S3-6: compute total allocated...Ch. 3 - Continuation of S3-7: determine over- or under...Ch. 3 - Prob. 3.9SECh. 3 - Calculate job cost and billing at appliance repair...Ch. 3 - Calculating overallocated or underallocated...Ch. 3 - Prob. 3.12SECh. 3 - Record manufacturing labor costs (Learning...Ch. 3 - Prob. 3.14SECh. 3 - Prob. 3.15SECh. 3 - Understanding key terms (Learning Objectives 1, 2,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Prob. 3.18AECh. 3 - Determine the cost of a job and use it for pricing...Ch. 3 - Compute a predetermined overhead rate and...Ch. 3 - Prob. 3.21AECh. 3 - Prob. 3.22AECh. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Job cost and bid price at a consulting firm...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Identify type of costing system (Learning...Ch. 3 - Understand the flow of costs in a job cost shop...Ch. 3 - Prob. 3.33BECh. 3 - Prob. 3.34BECh. 3 - Prob. 3.35BECh. 3 - Sustainability and job costing (Learning...Ch. 3 - Determine the cost of a job (Learning Objectives...Ch. 3 - Compare bid prices under two different allocation...Ch. 3 - Analyze manufacturing overhead (Learning...Ch. 3 - Record manufacturing overhead (Learning Objectives...Ch. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze T-accounts (Learning Objectives 2, 3, 5, ...Ch. 3 - Prob. 3.43BECh. 3 - Record journal entries (Learning Objectives 2, 3,...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Analyze Manufacturing Overhead (Learning...Ch. 3 - Use job costing at an advertising agency (Learning...Ch. 3 - Use job costing at a consulting firm (Learning...Ch. 3 - Prepare job cost record (Learning Objectives 2, 3,...Ch. 3 - Determine and record job costs (Learning...Ch. 3 - Determine flow of costs through accounts (Learning...Ch. 3 - Job costing or process costing for wedding...Ch. 3 - Discussion Questions 1. Why would it be...Ch. 3 - Unwrapped or How Its Made Go to www.YouTube.com...Ch. 3 - Ethics involved with choice of cost driver...Ch. 3 - Prob. 3.61ACTCh. 3 - Issues with cost of job (Learning Objectives 2, 3,...
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