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Chapter 7 1. Jennifer's Home Remodeling worked on three jobs during March. Job 13 was in process on March 1 with total charges of $5,500. During the month, the following additional transactions occurred: a. Purchased $10,000 worth of new materials on account. b. Charged materials to jobs as follows: $1,000 to Job 13, $4,000 to Job 14, $3,000 to Job 15, and $2,000 as indirect materials. c. Charged labor to jobs as follows: $1,000 to Job 13, $3,000 to Job 14, $2,000 to Job 15, and $1,000 as indirect labor. d. Incurred indirect expenses totaling $13,000 including depreciation of $4,000. This also included credits of $9,000 to Accounts Payable. e. Applied manufacturing overhead for March to Work in Process based on materials used in each job. The predetermined rate was based on expected materials of $80,000 and expected overhead of $120,000 for this year Show the journal entries to record these transactions. 2. Refer to the data for Jennifer's Home Remodeling in Question 1. Suppose that the following additional transactions occurred: a. Completed and charged the following jobs to Finished Goods: Job 13 for $9,000 and Job 14 for $13,000. b. Sold Job 13 for $12,000 and Job 14 for $15,000, both for cash. c. Closed Manufacturing Overhead Control and Applied Manufacturing Overhead. Actual manufacturing overhead incurred for the month was $13,000. Any over- or underapplied overhead is written off to Cost of Goods Sold. Show journal entries for these transactions. Include the entry to close the manufacturing overhead accounts to Cost of Goods Sold for the month of March Chapter 8 1. Bart's Beverages is a small, local operation that makes only one flavor of soft drink. The following data are available for operations in its Blending Department during October. Barrels Percent Complete Beginning work-in-process inventory, October 1 1,000 Materials costs 25% Conversion costs 10 Units started in October 5,000 Costs incurred in October Materials costs Conversion costs Ending work-in-process inventory, October 31 500 Materials costs 80 Conversion costs 40 Costs $ 1,113 194 22,487 14,056 ? ? Using weighted-average process costing, prepare a cost of production report for October 3. The Bottling Department at Bart's Beverages receives the blended soft drink in barrels and pours it into bottles. The following data are available for operations in the Bottling Department during August. (Note that the units here are bottles, not barrels.) Bottles Percent Complete Costs Beginning work-in-process (WIP) inventory, August 1 50,000 Transferred-in costs 100% $ 6,998 Materials costs -0- -0- Conversion costs 5 69 Units started in August 240,000 Costs incurred in August Transferred-in costs $33,602 Materials costs 58,000 Conversion costs 7,611 Ending WIP inventory, August 31 40,000 Transferred-in costs 100 ? Materials costs 100 ? Conversion costs 15 ? Using weighted-average process costing, prepare a cost of production report for August for the Bottling Department. 3. Rigney CorQporation manufactures two models of travel alarms, the M-24 and the D-12, which differ only in the quality of plastic used for the cases. Production takes place in two departments, Manufacturing and Finishing. Data for the only two work orders for February are shown in the following table. Conversion costs are allocated based on the number of units produced. There are no work-in-process inventories. M-24 D-12 Total (5,000 units) (9,000 units) Materials Manufacturing $42,500 $20,000 $22,500 Conversion costs Manufacturing 42,000 Finishing 21,000 Total conversion cost $63,000 What is the cost per unit transferred to finished goods inventory for the two models, M-24 and D-12, in February? 2