Cost of Materials Issuances Under the FIFO Method An Incomplete subsidiary ledger of materials Inventory for May is as follows: Balance a. Complete the materials issuances and balances for the materials subsidiary ledger under Firo. Received Issued Receiving Materials Unit Report Quantity Requisition Price Quantity Amount Number Number May 1 25 200 $10 May 4 Unit Date Quantity Amount amount price 280 58 $2,240 106 320 May 10 31 130 12 May 21 119 190 May 27 b. Determine the materials inventy balance at the end of May. c. Joumalize the summary entry to transfer materials to work in process. If an amount box does not require an entry, leave it blank Work In Process Materials 88 d. Comparing quantities on hang as reported in the materials ledger with predeterminud order points would enable management to order materials before an) Tack of materials causes idle time. Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Hours Job 301 Job 302 Process Job 303 Improvement Torn Couro 20 11 6 David Clancy 9 16 15 Jose Cano 13 17 12 The direct labor rate earned per hour by the three employees is as follows: Tom Couro $16 David Clancy 24 Jose Cano 20 The process improvement category includes training, quality improvement, and other indirect tasks. a. Journalize the entry to record the factory labor costs for the week. If an amount box does not require an entry leave it blank. Work In Process Factory Overhead Wages Payable Predetermined Factory Overhead Rate Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $299,600 Depreciation expense 75,000 Utilities 32,000 Nurse salaries 278,500 Technician wages 126,900 Total operating room overhead $812,000 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Determine the predetermined operating room overhead rate for the year. per hour b. Bill Harris had a five-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a? c. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $67,250. Determine the overapplied operating overhead or underapplied operating overhead for the period. overapplied Entries for Factory Costs and Jobs Completed Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets, Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $4,500 of indirect materials and $8,200 of indirect labor were used during the month. The cast sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $12,500 Direct materials $18,750 Direct labor 31,000 Direct labor 42,200 Factory overhead 7,750 Factory overhead 10,550 Total $51,250 Total $71.500 Job 303 Job 304 Direct materials $9,940 Direct materials $14,310 Direct labor 16,500 Direct labor 17.100 Factory overhead Factory overhead Journalize the summary entry to record each of the following operations for March (one entry for each operation) a. Direct and indirect materials used. If an amount box does not require an entry leave it blank Work in Process Factory Overhead Materials b. Direct and indirect labor used. If an amount box does not require an entry, leave it blank. Work In Process Factory Overhead Wages Payable Feedback c. Factory overhead applied to all four Jobs (a single overhead rate is used based on direct labor cost). If an amount box does not require an entry, leave it blank, Work In Process Factory Overhead Fredbo d. Completion of Jobs 301 and 302. If an amount box does not require an entry, leave it blank. Finished Goods Work In Process Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc, during February, the first month of operations as a producer of road bikes: Purchased $595,200 of materials. Used $511,900 of direct materials in production Incurred $440,000 of direct labor wages Applied factory overhead at a rate of 80% of direct labor cost. Transferred $1,251,700 of work in process to finished goods Sold goods with a cost of $1,190,400, Revenues earned by selling bikes, 52.130,800. Incurred $$11.900 of seeing expenses Incurred $190,500 of administrative expenses a. Prepare the income statement for Rushmore song in for the month encing February 28. Anwmet Rushmore Biking Inc. uses the perpetua inventory method Rushmore Biking Inc. Income Statement For the Month Ended February 28 Revenues Cost of goods sold Gross pront Selling and administrative expenses Selling expenses 5 Administrative expenses Total sing and distreepers .. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual Inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Revenues Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Operating income b. Determine the inventory balances on February 28, the end of the first month of operations Materials inventory, February 28 Work in process inventory, February 28 Finished goods inventory, February 28 Cost of Materials Issuances Under the FIFO Method An Incomplete subsidiary ledger of materials Inventory for May is as follows: Balance a. Complete the materials issuances and balances for the materials subsidiary ledger under Firo. Received Issued Receiving Materials Unit Report Quantity Requisition Price Quantity Amount Number Number May 1 25 200 $10 May 4 Unit Date Quantity Amount amount price 280 58 $2,240 106 320 May 10 31 130 12 May 21 119 190 May 27 b. Determine the materials inventy balance at the end of May. c. Joumalize the summary entry to transfer materials to work in process. If an amount box does not require an entry, leave it blank Work In Process Materials 88 d. Comparing quantities on hang as reported in the materials ledger with predeterminud order points would enable management to order materials before an) Tack of materials causes idle time. Entry for Factory Labor Costs The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: Hours Job 301 Job 302 Process Job 303 Improvement Torn Couro 20 11 6 David Clancy 9 16 15 Jose Cano 13 17 12 The direct labor rate earned per hour by the three employees is as follows: Tom Couro $16 David Clancy 24 Jose Cano 20 The process improvement category includes training, quality improvement, and other indirect tasks. a. Journalize the entry to record the factory labor costs for the week. If an amount box does not require an entry leave it blank. Work In Process Factory Overhead Wages Payable Predetermined Factory Overhead Rate Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be: Disposable supplies $299,600 Depreciation expense 75,000 Utilities 32,000 Nurse salaries 278,500 Technician wages 126,900 Total operating room overhead $812,000 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. a. Determine the predetermined operating room overhead rate for the year. per hour b. Bill Harris had a five-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (a? c. During January, the operating room was used 240 hours. The actual overhead costs incurred for January were $67,250. Determine the overapplied operating overhead or underapplied operating overhead for the period. overapplied Entries for Factory Costs and Jobs Completed Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets, Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $4,500 of indirect materials and $8,200 of indirect labor were used during the month. The cast sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $12,500 Direct materials $18,750 Direct labor 31,000 Direct labor 42,200 Factory overhead 7,750 Factory overhead 10,550 Total $51,250 Total $71.500 Job 303 Job 304 Direct materials $9,940 Direct materials $14,310 Direct labor 16,500 Direct labor 17.100 Factory overhead Factory overhead Journalize the summary entry to record each of the following operations for March (one entry for each operation) a. Direct and indirect materials used. If an amount box does not require an entry leave it blank Work in Process Factory Overhead Materials b. Direct and indirect labor used. If an amount box does not require an entry, leave it blank. Work In Process Factory Overhead Wages Payable Feedback c. Factory overhead applied to all four Jobs (a single overhead rate is used based on direct labor cost). If an amount box does not require an entry, leave it blank, Work In Process Factory Overhead Fredbo d. Completion of Jobs 301 and 302. If an amount box does not require an entry, leave it blank. Finished Goods Work In Process Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc, during February, the first month of operations as a producer of road bikes: Purchased $595,200 of materials. Used $511,900 of direct materials in production Incurred $440,000 of direct labor wages Applied factory overhead at a rate of 80% of direct labor cost. Transferred $1,251,700 of work in process to finished goods Sold goods with a cost of $1,190,400, Revenues earned by selling bikes, 52.130,800. Incurred $$11.900 of seeing expenses Incurred $190,500 of administrative expenses a. Prepare the income statement for Rushmore song in for the month encing February 28. Anwmet Rushmore Biking Inc. uses the perpetua inventory method Rushmore Biking Inc. Income Statement For the Month Ended February 28 Revenues Cost of goods sold Gross pront Selling and administrative expenses Selling expenses 5 Administrative expenses Total sing and distreepers .. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual Inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 Revenues Cost of goods sold Gross profit Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Operating income b. Determine the inventory balances on February 28, the end of the first month of operations Materials inventory, February 28 Work in process inventory, February 28 Finished goods inventory, February 28