Cost Accounting Acct 362/562 Costing for Jobs or Batches. Homework Problems. Problem #69

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1 Cost Accounting Acct 362/562 Costing for Jobs or Batches Homework Problems Problem #69 Basic - Linking jobs to the balance sheet and income statement. This problem focuses on job-order costing for the month of May. Start Costs on Costs End Job Date April 30 In May Date Disposition 4 April 6 $530 $0 April 25 Sold in May for $700 5 April 20 $400 $250 May 10 Sold in May for $900 6 April 25 $1,250 $0 April 30 Sold in April for $2,100 7 May 5 $0 $450 May 15 Sold in May for $650 8 May 10 $0 $550 June 3 Sold in June for $1,150 9 May 15 $0 $820 May 25 Sold in May for $1, May 22 $0 $610 May 30 Sold in May for $ May 31 $0 $125 June 10 Sold in June for $2,500 Work-in-process May 1 Work-in-process May 31 Finished goods May 1 Finished goods May 31 Cost of goods manufactured May (compute it two ways) Cost of goods sold May (compute it two ways) May May 205

2 Problem #70 Basic - Linking jobs to the balance sheet and income statement. This problem focuses on job-order costing for the month of October. Start Costs on Costs in Job date Sept. 30 October End date Disposition 1723 August 30 $460 $0 Sept. 10 Sold in October, $ Sept. 20 $380 $0 Sept. 28 Sold in September, $1, Sept. 21 $530 $870 Oct. 4 Sold in October, $2, Sept. 26 $420 $0 Sept. 30 Sold in October, $ Sept. 30 $1,250 $400 Oct. 5 Sold in October, $2, Oct. 5 $0 $930 Oct. 27 Sold in October, $1, Oct. 12 $0 $1,920 Oct. 22 Sold in October, $4, Oct. 13 $0 $1,730 Nov. 1 Sold in November, $3, Oct. 20 $0 $560 Oct. 25 Sold in November, $2, Oct. 25 $0 $495 Nov. 4 Sold in November, $1,040 Work-in-process October 1 Work-in-process October 31 Finished goods October 1 Finished goods October 31 Cost of goods manufactured October (compute it two ways) Cost of goods sold October (compute it two ways) October October 206

3 Problem #71 Job costing with journal entries This problem focuses on job-order costing for the month of June. Start Costs on DM DL OH Finish Job Date May 31 June June June Date Disposition 1 May 5 $2,420 $0 $0 $0 May 6 Sold in June for $4,650 2 May 20 $1,250 $250 $300 $150 June 5 Sold in June for $3,700 3 May 25 $750 $0 $0 $0 May 30 Sold in June for $2,100 4 June 5 $0 $920 $600 $300 June 10 Sold in June for $2,500 5 June 10 $0 $1,300 $420 $210 June 25 Sold in June for $3,650 6 June 15 $0 $650 $570 $285 July 15 Sold in July for $4,900 7 June 22 $0 $610 $180 $90 June 30 Sold in July for $1,670 8 June 30 $0 $600 $200 $100 July 18 Sold in July for $3,800 Overhead costs incurred (actual) during June are $1,010. Work-in-process June 1 Work-in-process June 30 Finished goods June 1 Finished goods June 30 Cost of goods manufactured June (compute it two ways) Cost of goods sold (unadjusted) June (compute it two ways) Under/over applied OH June Cost of goods sold (adjusted) June June Gross Margin June Create T-accounts for Work-In-Process, Finished Goods, Overhead Control, Cost of Goods Sold Expense, Revenue, and enter beginning balances for June 1. Prepare all necessary journal entries and post to the accounts. 207

4 Problem #72 Job costing with journal entries This problem focuses on job-order costing for the month of January Start Costs on DM DL OH Finish Job Date Dec 31 Jan Jan Jan Date Disposition a Dec. 22 $1,650 $0 $0 $0 Dec. 29 Sold in Jan. for $3,770 b Jan. 24 $0 $200 $200 $400 Feb. 8 Sold in February for $2,900 c Jan. 15 $0 $380 $290 $110 Feb. 25 Sold in February for $1,750 d Jan. 7 $0 $920 $600 $300 Jan. 10 Sold in Jan. for $2,500 e Jan. 11 $0 $1,300 $280 $500 Jan. 25 Sold in Jan. for $3,650 f Dec. 8 $570 $0 $0 $0 Dec. 29 Sold in Jan. for $1,300 g Dec. 15 $840 $200 $300 $250 Jan. 8 Sold in Jan. for $3,400 h Jan. 19 $0 $800 $500 $650 Jan. 29 Sold in February for $3,670 Overhead costs incurred (actual) during January are $1,800. Work-in-process January 1 Work-in-process January 31 Finished goods January 1 Finished goods January 31 Cost of goods manufactured January (compute it two ways) Cost of goods sold (unadjusted) January (compute it two ways) Under/over applied OH January Cost of goods sold (adjusted) January January January Create T-accounts for Work-In-Process, Finished Goods, Overhead Control, Cost of Goods Sold Expense, Revenue, and enter beginning balances for January 1. Prepare all necessary journal entries and post to the accounts. 208

5 Problem #73 Multi-period job-order costing problem with journal entries. The Microton Technologies Company produces special pieces of custom equipment. It uses a job-order costing system, with over or under applied manufacturing overhead taken as an adjustment to CGS at the end of every month. revenue and cost of goods sold expense is closed to retained earnings at the end of every month. On December 31, the job costing system for Microton Technologies reported the following jobs carried over to January, 2008: Status Job Started DM DL MOH Total Finished EOM Dec 13 5,279 2,890 16,390 24,559 Dec 21 FG Dec 21 4,210 6,900 18,960 30,070 n/a WIP Dec , ,580 n/a WIP Summary for work done during January: Prior Prior Prior Prior Jan Jan Jan Jan Status Job Started DM DL MOH Total DM DL MOH Total Finished EOM Dec 13 5,279 2,890 16,390 24,559 24,559 Dec 21 Sold Dec 21 4,210 6,900 18,960 30, , ,825 Jan 12 Sold Dec , ,580 7,100 8,355 9,251 27,296 Jan 05 Sold Jan 5 3,622 6,328 12,031 21,981 Jan 17 Sold Jan 12 6,993 3,299 6,991 17,283 Jan 28 FG Jan 19 4,287 5,290 16,320 25,897 Jan 26 Sold Jan 28 1, ,935 n/a WIP 57,209 23,959 26,049 45, ,776 Actual manufacturing overhead incurred is $49,620. Job was sold for $37,650. Job was sold for $51,250. Job was sold for $36,790. Job was sold for $29, was sold for $41,000. Summary for work done during February: Prior Prior Prior Prior Feb Feb Feb Feb Status Job Started DM DL MOH Total DM DL MOH Total Finished EOM Jan 12 6,993 3,299 6,991 17,283 17,283 Jan 28 Sold Jan 28 1, ,935 2,686 6,223 8,834 20,678 Feb 12 Sold Feb 3 6,233 5,368 15,327 26,928 Feb 10 FG Feb 10 3,843 2,643 8,453 14,939 Feb 21 Sold Feb ,789 11,379 19,913 Feb 24 Sold Feb ,347 2,528 4,735 n/a WIP Feb ,011 3,114 Feb 28 FG 20,218 17,787 21,053 48, ,590 Actual manufacturing overhead incurred is $42,250. Job was sold for $19,600. Job was sold for $25,735. Job was sold for $28,690. Job was sold for $27,

6 Required: 1. For each month, compute the following amounts: Beginning and ending work-in-process Beginning and ending finished goods Cost of goods manufactured (compute it two ways) Unadjusted cost of goods sold (compute it two ways) Under/over applied OH Cost of goods sold (adjusted) 2. Create T-accounts for Work-In-Process, Finished Goods, Overhead Control, Cost of Goods Sold Expense, Revenue, and enter beginning balances for January 1. Prepare all necessary journal entries for each month and post to the accounts. 210

7 Problem #74 Applying overhead. The Xiao Company applies overhead to jobs on the basis of machine hours. The following information is available. Estimated overhead before period starts $90,000 Actual machine hours during the period ,000 Actual overhead accumulated by the period end... $60,000 Estimated machine hours before period starts ,000 Required: 1. What is the predetermined overhead rate? 2. How much overhead is applied to jobs for the period at the Xiao Company? 3. Is overhead over= or underapplied? By how much? 211

8 Additional practice problems for Job Costing Information for the Birkland job-order system. Problem #75 Job costing with journal entries Costs DM DL OH Job Started June 28 July July July Completed When sold A July 27 $0 $300 $350 $420 August 12 Sold in August, $1,810 B June 14 $530 $0 $0 $0 June 21 Sold in August, $930 C June 4 $880 $0 $0 $0 June 17 Sold in July, $1,900 D June 7 $410 $210 $470 $690 August 19 Sold in August, $6,800 E July 4 $0 $560 $430 $880 July 21 Sold in August, $4,500 F July 12 0 $500 $400 $60 July 21 Sold in July, $1,250 G June 19 $250 $570 $350 $670 July 3 Sold in July, $1,950 H July 17 $0 $700 $1,300 $1,150 August 8 Sold in September, $8,950 I July 11 $0 $900 $250 $420 July 21 Sold in July, $2,890 J July 11 $0 $520 $435 $725 July 21 Sold in July, $5,200 K June 5 $590 $0 $0 $0 June 13 Sold in June, $1,750 Overhead costs incurred (actual) during July are $4,870. Work-in-process July 1 Work-in-process July 31 Finished goods July 1 Finished goods July 31 Cost of goods manufactured July (compute it two ways) Cost of goods sold (unadjusted) July (compute it two ways) Under/over applied OH July Cost of goods sold (adjusted) July July July Create T-accounts for Work-In-Process, Finished Goods, Overhead Control, Cost of Goods Sold Expense, Revenue, and enter beginning balances for July 1. Prepare all necessary journal entries and post to the accounts. 212

9 Information for the Anderson job-order system. Problem #76 Job costing with journal entries Costs DM DL OH Job Started Feb 28 March March March Completed When sold A March 4 $0 $560 $320 $800 March 15 Sold in March, $4,300 B Feb 12 $425 $0 $0 $0 February 14 Sold in April, $1,400 C Feb 19 $210 $790 $285 $1,100 April 12 Sold in April, $7,900 D March 16 0 $280 $110 $500 March 29 Sold in March, $1,250 E Feb 28 $400 $610 $400 $1,400 March 16 Sold in March, $5,140 F March 20 $0 $400 $190 $620 April 5 Sold in April, $2,800 G March 25 $0 $360 $250 $600 April 6 Sold in May, $1,950 H March 22 $0 $110 $80 $340 March 24 Sold in March, $510 I March 1 $0 $930 $450 $1,200 March 12 Sold in April, $6,500 J Feb 9 $760 $0 $0 $0 February 12 Sold in February, $2,300 K Feb 12 $1,210 $0 $0 $0 February 28 Sold in March, $2,900 Overhead costs incurred (actual) during March are $6,900. Work-in-process March 1 Work-in-process March 31 Finished goods March 1 Finished goods March 31 Cost of goods manufactured March (compute it two ways) Cost of goods sold (unadjusted) March (compute it two ways) Under/over applied OH March Cost of goods sold (adjusted) March March March Create T-accounts for Work-In-Process, Finished Goods, Overhead Control, Cost of Goods Sold Expense, Revenue, and enter beginning balances for March 1. Prepare all necessary journal entries and post to the accounts. 213

10 Problem #77 Job costing with journal entries Information for the Nesline job-order system. Costs DM DL OH Job Started August 31 Sept Sept Sept Completed When sold A Sept 1 $0 $1,400 $700 $900 Sept 27 Sold in October, $5,200 B Aug 13 $920 $0 $0 $0 August 28 Sold in September, $1,900 C Aug 3 $1,600 $0 $0 $0 August 12 Sold in August, $3,300 D Aug 11 $870 $0 $0 $0 August 14 Sold in October, $2,300 E Sept 23 $0 $700 $350 $150 October 6 Sold in October, $2,250 F Sep 18 0 $1,300 $600 $500 Sept 28 Sold in September, $4,300 G Aug 15 $1,300 $1,800 $1,250 $1,100 October 12 Sold in October, $9,700 H Sept 10 $0 $900 $600 $800 Sept 24 Sold in September, $4,800 I Sept 17 $0 $600 $900 $600 Sept 29 Sold in October, $3,600 J Sept 15 $0 $350 $150 $400 Sept 23 Sold in September, $1,200 K Aug 28 $400 $600 $200 $700 Sept 16 Sold in September, $3,700 Overhead costs incurred (actual) during September are $4,900. Work-in-process September 1 Work-in-process September 30 Finished goods September 1 Finished goods September 30 Cost of goods manufactured September (compute it two ways) Cost of goods sold (unadjusted) September (compute it two ways) Under/over applied OH September Cost of goods sold (adjusted) September September September Create T-accounts for Work-In-Process, Finished Goods, Overhead Control, Cost of Goods Sold Expense, Revenue, and enter beginning balances for September 1. Prepare all necessary journal entries and post to the accounts. 214