Exercise E21-1 page 932. (a) Factory Labor 103,000 Factory Wages Payable 90,000 Employer Payroll Taxes Payable 9,000

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1 Exercise E21-1 (a) Factory Labor 103,000 Factory Wages Payable 90,000 Employer Payroll Taxes Payable 9,000 Employer Fringe Benefits Payable 4,000 (b) Work in Process Inventory 92,700 Manufacturing Overhead 10,300 Factory Labor 103,000

2 (a) Exercise E21-2 5/31 Work in Process (Inventory) 8,900 Manufacturing Overhead 800 Raw Materials (Inventory) 9, Work in Process (Inventory) 13,000 Manufacturing Overhead 1,200 Factory Labor 14, Work in Process (Inventory) 9,100 Manufacturing Overhead 9,100 Job 429 Beg Bal Materials Labor Overhead Total 2,000 2,500 2,400 1,680 8, Finished Goods (Inventory) 8,580 Work in Process (Inv) 8,580

3 Exercise E21-2 (continued) Work in Process (Inventory) * Beg Bal 3,200 * FG 8,580 DM 8,900 * DL 13,000 * MO 9,100 * 34,200 * * B = 25,620 * Subsidary Ledger of Job Cost Sheets Job Beg Bal Materials Labor Overhead Total 430 1,200 2,000 3,000 2,100 8, ,400 7,600 5,320 17,320 25,620

4 Exercise E21-5 page 933 (a) est. MO for year = MO rate est. activity for year $275,000 = $2.20 per hour 125,000 hrs. Make the entry to apply overhead to production for January. 31 Work in Process (Inventory) 22,000 Manufacturing Overhead 22,000 (b) Manufacturing Overhead Actual 26,000 * Applied 22,000 * 1/31 Bal = 4,000 * underapplied * Bal Sheet as Prepaid Expense (c) Manufacturing Overhead Actual Jan 26,000 * Applied 22,000 Feb - Dec 274,000 * Applied 264,000 12/31 Bal = 14,000 * underapplied * (d) Cost of Goods Sold 14,000 Manufacturing Overhead 14,000

6 Exercise E21-6 page 934 (a) (1) Source documents for Materials = materials requisition slips Labor = time tickets Overhead = predetermined rate (2) at beginning of year would be: est. MO for year = MO rate est. activity for year but after the fact D L = 550 and 475 and 675=125% M O

7 Exercise E21-6 (continued) (3) Date Materials Labor Overhead 7/ , , ,825 1,360 1,700 Total Cost = $7,885 Unit Cost = 7,885 = $3.94 2,000 (d) Finished Goods (Inventory) 7,885 Work in Process (Invntry) 7,885

8 Exercise E21-7 page Raw Materials (Inventory) 48,900 Accounts Payable 48, Work in Process (Inventory) 27,200 Manufacturing Overhead 8,800 Raw Materials (Inventory) 36, Factory Labor 64,900 Employer Payroll Tax Pay 5,900 Wages Payable 59, Work in Process (Inventory) 60,000 Manufacturing Overhead 4,900 Factory Labor 64, Manufacturing Overhead 80,500 Accounts Payable 80,500

9 Exercise E21-7 (continued) 6. Work in Process (Inventory) 90,000 Manufacturing Overhead 90, Finished Goods (Inventory) 88,000 Work in Process (Inventory) 88, Accounts Receivable 103,000 Sales 103,000 Cost of Goods Sold 68,000 Finished Goods (Inventory) 68,000 Determine the balance of Manufacturing Overhead and state whether it is under or overapplied. Manufacturing Overhead * 2. IM 8,800 * 6. Applied 90, IL 4,900 * 5. O 80,500 * Bal = 4,200 (under)

10 Exercise E21-8 page Raw Materials (Inventory) 172,000 Accounts Payable 172,000 Factory Labor 87,300 Wages Payable 87, Work in Process (Inventory) 148,530 Manufacturing Overhead 4,470 Raw Materials (Inventory) 153,000 Work in Process (Inventory) 84,000 Manufacturing Overhead 3,300 Factory Labor 87, Manufacturing Overhead 39,500 Accounts Payable 39,500

11 Exercise E21-8 (continued) 4. Manufacturing Overhead 14,550 Accumulated Depreciation 14, Work in Process (Inventory) 63,000 Manufacturing Overhead 63,000 Job Materials Labor Overhead Total A20 32,240 18,000 13,500 63,740 A21 40,920 26,000 19,500 86,420 A23 39,270 25,000 18,750 83, , Finished Goods (Inventory) 233,180 Work in Process (Invntry) 233,180

12 Brief Exercise BE21-2 Raw Materials (Inventory) 8,000 Accounts Payable 8,000 Factory Labor 4,000 Wages Payable 3,600 Employer Payroll Tax Pay 400 Manufacturing Overhead 2,000 Utilities Payable 2,000 Brief Exercise BE21-3 Work in Process (Inventory) 3,800 Manufacturing Overhead 600 Raw Materials (Inventory) 4,400 Brief Exercise BE21-4 Work in Process (Inventory) 3,500 Manufacturing Overhead 500 Factory Labor 4,000

13 Brief Exercise BE21-6 est. MO for year = MO rate est. activity for year Based on direct labor cost: $300,000 = 60% $500,000 Based on direct labor hours: $300,000 = $6 per hour 50,000 hrs. Based on machine hours: $300,000 = $3 per hour 100,000 hrs. The journal entry to apply overhead costs to production is: Work in Process (Inventory) Manufacturing Overhead est est

14 Brief Exercise BE21-7 1/31 Work in Process (Inventory) 24,000 Manufacturing Overhead 24,000 2/28 Work in Process (Inventory) 18,000 Manufacturing Overhead 18,000 3/31 Work in Process (Inventory) 30,000 Manufacturing Overhead 30,000 Brief Exercise BE21-8 3/31 Finished Goods (Inventory) 60,000 Work in Process (Inventory) 60, Cash 35,000 Sales 35, Cost of Goods Sold 28,000 Finished Goods (Inventory) 28,000

15 Brief Exercise BE21-9 Oliva Company Debit balance = underapplied Interim Statements = Prepaid Expense on B.S. Annual Statements = not shown separately Glendo Company Credit balance = overapplied Interim Statements = Unearned Revenue on B.S. Annual Statements = not shown separately Brief Exercise BE21-10 Oliva Company Cost of Goods Sold 1,000 Manufacturing Overhead 1,000 Glendo Company Manufacturing Overhead 1,200 Cost of Goods Sold 1,200

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

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