1.

The following selected ledger accounts of the Reynolds Manufacturing Company are for July.

Materials Inventory July 1 balance .. 150,000 July credits . 550,000 July debits .. 475,000

Manufacturing Overhead July debits ...... 638,000 July 1 balance 50,000 July credits 608,000

Work in Process Inventory July 1 balance .. 100,000 July credits 1,650,000 July debits: Direct material 488,000 Direct labor 675,000 Manufacturing overhead .. ?

Wages Payable July debits .. 850,000 July 1 balance. 188,000 July credits .. 725,000

Instructions:

a. Compute the amount of indirect material requisitioned for production during July.

b. Compute how much indirect labor cost was incurred during July.

c. Calculate the manufacturing overhead rate based on direct labor cost.

d. Compute the amount of under-or overapplied manufacturing overhead in July.

2.

Bens Brushes Inc. manufactures electric toothbrushes. The brushes are manufactured in 2 sequential processes: Interior and Assembly. Information related the Interior Department for the month of October can be summarized as follows:

Interior Department:

• Beginning units: 3,900 70% completed
• Ending units: 3,000 30% completed
• Units started this month: 9,000
• Direct materials costs in beginning WIP: $1,980
• Conversion costs in beginning WIP: $4,080
• Direct materials costs incurred this month: $13,500
• Conversion costs incurred this month: $24,000
• In the Interior Department, direct materials are added at the beginning of the process while conversion costs are added uniformly throughout the assembly process.

Instructions: Compute each of the following items, showing all work for partial credit. You do NOT have to put your answers in the blanks shown below.

Mater. Conver. Costs

______ ______ 1. Equivalent units for materials and conversion costs

______ ______ 2. Costs per equivalent units for materials and conversion costs

______ ______ 3. Total cost assigned to unit transferred out

______ ______ 4. Total cost of ending work in process

3.

At the beginning of 2017, Dexter Company estimated that it would incur $220,000 of manufacturing overhead cost during 2017 and use 20,000 direct labor hours. On January 1, 2017, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $60,000, $-0-, and $115,000, respectively.

Required:

Using the following account letters, indicate the journal entries to record the following for 2017. For example, the payment of an account payable would be: A, C. List the debit letter(s) first. Also indicate the entry amounts for 2, 3, 5, 6 and 7.

1. Purchased materials on account, $425,000.

2. Of the $425,000 total dollar value of materials used, $390,000 represented direct material.

3. Determined total factory labor, $228,000 (19,000 hrs. @$12/hr.). Of the factory labor, 16,000 were direct labor hours.

4. Incurred actual manufacturing overhead other than those items already recorded, $100,000. (Credit Accounts Payable and Accumulated Depreciation)

5. Applied manufacturing overhead based on direct labor hours to production.

6. Ending inventory of work in process was $75,000. Record the cost of goods manufactured.

7. Transferred the balance in Manufacturing Overhead to the appropriate account.

A. Accounts Payable

B. Accumulated Depreciation

C. Cash

D. Cost of Goods Sold

E. Finished Goods Inventory

F. Materials Inventory

G. Manufacturing Overhead

H. Wages Payable

I. Work in Process Inventory

4.

LeanNMean Manufacturing uses just-in-time inventory techniques to reduce their carrying costs. Despite having a low level of working capital, they experience significant sales and production levels. LeanNMean reported the following information at year-end:

Beginning Materials Inventory	$ 2,000	Indirect Materials Used	$ 8,000
Ending Materials Inventory	2,400	Direct Labor	288,000
Beginning Work in Process	16,000	Indirect Labor	380,000
Ending Work in Process	8,400	Factory Depreciation	20,000
Beginning Finished Goods Inventory	4,800	Factory Maintenance	12,000
Ending Finished Goods Inventory	3,600	Factory Utilities	32,000
Cost of Materials Purchased	300,000	Selling & Administrative Expense	656,000

Instructions: Compute each of the following amounts, showing all work for partial credit

1.Direct material used

2. Total manufacturing overhead

3. Total manufacturing costs

4. Cost of goods manufactured

5. Cost of goods sold

6. Prime cost

7. Conversion cost