E19-1 Classify the above items into the following categories: a. Direct Materials, b. Direct Labor, c. Manufacturing Overhead.

Item	Classification
Salaries for assembly line separators
Insurance on factory machines.
Property taxes on the factory building.
Factory repairs.
Upholstery used in manufacturing furniture.
Wages paid to assembly line workers.
Factory machinery depreciation.
Glue, nails, paint, and other small parts used in production.
Factory supervisors' salaries.
Wood used in Manufacturing furniture

E19-2 (a) Identify each of the above costs as direct materials, direct labor, and manufacturing overhead or period costs.

Item	Amount	Classification
Materials used in product	$100,000
Advertising expense	45,000
Depreciation on plant	60,000
Property taxes on plant	14,000
Property taxes on store	7,500
Delivery expense	21,000
Labor costs of assembly-line workers	110,000
Sales commissions	35,000
Factory supplies used	13,000
Salaries paid to sales clerks	50,000

E19-3 From the following information, determine the total amount of Manufacturing Overhead, Product Cost and Period Cost

Item	Cost	Item	Cost
Factory Utilities	$15,500	Direct Labor	$69,100
Depreciation Factory Equip	12,250	Sales Salaries	46,400
Indirect Factory Labor	48,900	Factory Repairs	2,000
Direct Materials Used	137,600	Advertising	15,000
Depreciation Delivery Trucks	3,800	Property Taxes on Factory Building	2,500
Indirect Materials	80,800	Repairs Office Equip	1,300
Factory Manager Salary	8,000	Office Supplies Used	2,640

Manufacturing Overhead	Amount
Total MOH

Product Costs	Amount
Total Product Cost

Period Cost	Amount
Total Period Cost

E19-4 The following data were taken from the records of Rokary Corporation for the fiscal year ended June 30, 2020.

Raw Materials Inventory 7/1/19	$ 48,000	Factory Insurance	$ 4,600
Raw Materials Inventory 6/30/20	39,600	Factory Machinery Depreciation	16,000
Finished Goods Inventory 7/1/19	96,000	Factory Utilities	27,600
Finished Goods Inventory 6/30/20	75,900	Office Utilities Expense	8,650
Work in Process Inventory 7/1/19	19,800	Sales Revenue	534,000
Work in Process Inventory 6/30/20	18,600	Sales Discounts	4,200
Direct Labor	139,250	Plant Manager's Salary	58,000
Indirect Labor	24,460	Factory Property Taxes	9,600
Accounts Receivable	27,000	Factory Repairs	1,400
Cash	32,000	Raw Materials Purchases	96,400

Instructions:

(a) cost of goods manufactured schedule. (Assume all raw materials used were direct materials.)

(b) an income statement through gross profit.

(c) the current assets section of the balance sheet on June 30, 2020.

Solution E19-4 (a)

Cost of Goods Manufactured Schedule
Work in Process Beg. Inventory 1 july 2019			$
Raw Materials Beg. Inventory 1 July 2019	$
Add: Raw Materials Purchases
Total Raw Materials Available for Use	$
Less: Raw Materials End. Inventory 30 June 2020
Direct Materials Used		$
Direct Labor
Manufacturing Overhead:
	$
Total Manufacturing Overhead
Total Manufacturing Cost Added during the year
Total Manufacturing Cost in Work in Process			$
Less: Work in Process End. Inventory 30 June 2020
Cost of Goods Manufactured			$

Solution E19-4 (b)

(Partial) Income Statement
Sales Revenue		$
Less Sales Discounts
Net Sales			$
Less Cost of Goods Sold:
Finished Goods Beg. Inventory 1 july 2019		$
Cost of Goods Manufactured
Cost of Goods Available for Sales		$
Less: Finished Goods End. Inventory 30 june 2020
Cost of Goods Sold
Gross Profit			$

Solution E19-4 (c)

(Partial) Balance Sheet
Assets
Current Assets:
Cash		$
Accounts Receivable
Inventories:
Finished Goods Inventory	$
Work in Process Inventory
Raw Materials Inventory
Total Inventories
Total Current Assets			$

Exercises Chapter 20

E20-1Roprin Corporationapplies manufacturing overhead to jobs based on machine hours used. Overhead costs are expected to total $325,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $342,000 of overhead costs are incurred and 130,000 hours are used.

Instructions:

(a) Compute the manufacturing overhead rate for the year.

(b) What is the amount of under- or overapplied overhead on December 31?

(c) Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.

GENERAL JOURNAL Pag. 1
DATE	ACCOUNT DESCRIPTION	REF	DEDIT	CREDIT
31 Dec

E20-2 RodMary Corporationincurred the following transactions.

1. Purchased raw materials on account $46,300.

2. Raw materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classied as indirect materials.

3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable.

4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor.

5. Manufacturing overhead costs incurred on account were $80,500.

6. Depreciation on the company's office building was $8,100.

7. Manufacturing overhead was applied at the rate of 150% of direct labor cost.

8. Goods costing $88,000 were completed and transferred to nished goods inventory.

9. Finished goods inventory costing $75,000 to manufacture were sold on account for $103,000.

Instructions: Journalize the transactions. (Omit explanations.)

Solution E20-2

GENERAL JOURNAL Pag. 1
DATE	ACCOUNT DESCRIPTION	REF	DEDIT	CREDIT
1
2
3
4
5
6
7
8
9

E20-3LolualCorporation begins operations on April 1. Information from job cost sheetsshows the following:

Manufacturing Costs Assigned
Job #	April	May	June	Completed in
10	$5,200	$4,400		May
11	4,100	3,900	$2,000	June
12	1,200			April
13		4,700	4,500	June
14		5,900	3,600	Not completed

Job 12 was completed in April.

Job 10 was completed in May.

Jobs 11 and 13 were completed in June.

Each job was sold for 25% above its cost in the month following completion.

Instructions:

(a) What is the balance in Work in Process Inventory at the end of each month? Presente los cmputos.

April
May
June

(b) What is the balance in Finished Goods Inventory at the end of each month? Presente los computos

April
May
June

(c) What is the gross profit for May, June, and July? Presente los cmputos de "Sales" & "Cost of Goods Sold"

	April	May	June
Sales Revenue
Cost of Goods Sold
Gross Profit
April	Sales Revenue:
April	Cost of Good Sold:
May	Sales Revenue:
May	Cost of Goods Sold:
June	Sales Revenue:
June	Cost of Goods Sold:

Problema P20-1 Roprin Corporation is a construction company specializing in custom patios. The patios are constructed of concrete, brick, berglass, and lumber, depending upon customer preference. On June 1, 2020, the general ledger for Roprin Corporation contains the following data.

Raw Materials Inv.	$4,200	Manufacturing Overhead Incurred (Dbito)	$31,650
Work in Process Inv.	$5,540	Manufacturing Overhead Applied (Crdito)	$32,640

Subsidiary data for Work in Process Inventory on June 1 are as follows.

Job Cost Sheets
Customer Job
Cost Element	Rosa	Mariel	Vero
Direct Materials	$ 600	$ 800	$ 900
Direct Labor	320	540 540	580
Manufacturing Overhead	__400	_675	__725
Total as of 1 June 2020	$1,320	$2,015	$2,205

During June, raw materials purchased on account were $4,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $700 and miscellaneous costs of $400 incurred on account.

A summary of materials requisition slips and time tickets for June shows the following.

Customer Job	Materials Requisition Slips	Time Tickets
Rosa	$ 1,100	$ 840
Hermarie	2,000	800
Mariel	500	360
Vero	1,300	1,200
Total Direct Cost	4,900	3,200
Indirect Cost	1,500	1,200
Total Cost	$6,400	$4,400

Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. During June, the patios for customers Rosa, Mariel, and Vero were completed and sold for a total of $18,900 each. Each customer paid in full.

Instructions:

1. Journalize the June transactions(i)for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred;(ii)assignment of direct materials, labor, and overhead to production; and(iii) completion of jobs and sale of goods.
2. Post the entries to Work in Process Inventory account and to each of customers' job cost sheet.
3. Reconcile the balance in Work in Process Inventory with the costs of unnished jobs.
4. cost of goods manufactured schedule for June 30, 2020

Solution P20-1 (A)

GENERAL JOURNAL Pag. 1
DATE	ACCOUNT DESCRIPTION (NAME)	REF	DEDIT	CREDIT

Solution P20-1 (B) Work in Process Subsidiary (Job Cost Sheets)

Job Cost Sheet
Rosa's Job
	Direct Materials	Direct Labor	MOH	Total
Beg. Bal. 1 June 2020	$ 600	$ 320	$ 400	$1,320
Add: Direct Materials
Direct labor
Manufacturing Overhead
Total in Work in Process	$	$	$	$

Job Cost Sheet
Mariel's Job
	Direct Materials	Direct Labor	MOH	Total
Beg. Bal. 1 June 2020	$ 800	$ 540	$ 675	$2,015
Add: Direct Materials
Direct labor
Manufacturing Overhead
Total in Work in Process	$	$	$	$

Job Cost Sheet
Vero's Job
	Direct Materials	Direct Labor	MOH	Total
Beg. Bal. 1 June 2020	$ 900	$ 580	$ 725	$2,205
Add: Direct Materials
Direct labor
Manufacturing Overhead
Total in Work in Process	$	$	$	$
Total Work in Process	$	$	$	$

Job Cost Sheets
Hermarie's Job
	Direct Materials	Direct Labor	MOH	Total
Work in Process 1 June 2020	$ -0-	$ -0-	$ -0-	$ -0-
Add: Direct Materials
Direct labor
Manufacturing Overhead
Total Work in Process 30 June 2020	$	$	$	$

Solution P20-1 (B)

Raw Materials Inventory	Work in Process Inventory
Debit	Credit	Debit	Credit
Beg Bal 5,540		Beg Bal 4,200
End Bal		End Bal
Manufacturing Overhead (MOH)	Finished Goods Inventory
Debit	Credit	Debit	Credit
32,650	32,640	Beg Bal -0-
End Bal		End Bal

Solution P20-1 (C)

Solution P20-1 (D)

Cost of Goods Manufactured Schedule
Work in Process Beg. Inventory 1 June 2020			$
Raw Materials Beg. Inventory 1 June 2020	$
Add: Raw Materials Purchases
Total Raw Materials Available for Use	$
Less: Raw Materials End. Inventory 30 June 2020
Total Material Used	$
Less: Indirect Material Used
Direct Material Used		$
Direct Labor
Manufacturing Overhead
Total Manufacturing Cost Added during the year
Total Manufacturing Cost in Work in Process			$
Less: Work in Process End. Inventory 30 June 2020
Cost of Goods Manufactured			$

Problema P20-2Rokary Corporation uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead (MOH) is applied to jobs based on direct labor cost in Department A, direct labor hours in Department B, and machine hours in Department C.

In establishing the predetermined overhead rates for 2020, the following estimates were made for the year.

Department
	A	B	C
Manufacturing overhead	$1,200,000	$1,500.00	$900,000
Direct labor costs	$1,500,000	$1,250,000	$450,000
Direct labor hours	100,000	125,000	40,000
Machine hours	400,000	500,000	120,000

During January, the job cost sheets showed the following costs and production data.

	Departments
	A	B	C
Direct materials used	$140,000	$126,000	$ 78,000
Direct labor costs	$120,000	$110,000	$ 37,500
Manufacturing Overhead Incurred	99,000	124,000	79,000
Direct labor hours	8,000	11,000	3,500
Machine hours	34,000	45,000	10,400

Instructions

(a) Compute the predetermined overhead rate for each department.

(b) Compute the total manufacturing costs assigned to jobs in January in each department

(c)Compute the under- or overapplied overhead for each department at January 31

Solution P20-2 (A)

Predetermined MOH Rate Computations

Department A

Department B

Department C

Solution P20-2 (B)

Compute the total manufacturing costs assigned to jobs in January in each department
	Departments
	A	B	C
Direct Materials	$	$	$
Direct Labor
Manufacturing Overhead (MOH)
Total Manufacturing Cost	$	$	$

Solution P20-2 (C)

Compute the under- or overapplied overhead for each department at January 31
	Departments
	A	B	C
MOH Applied *	$	$	$
MOH Incurred
MOH Over (Under) Applied	$	$	$

*Present the Computations of the MOH Assigned to Each Department

Department A

Department B

Department C