Problem 12-13A Job Costing Systems

Student Name: Class: Problem 12-13A BAUCOM MANUFACTURING CORPORATION Horizontal Statements Model Assets Cash + MOH + Raw. M. $50,000 + + (7,000) + + 7,000 + (1,200) + + (2,400) + + (1,200) + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + W-I-P + F. Goods + + 1,200 + 2,400 + 1,200 + + + + + + + + + + + + + + + Equity = C. Stk. + Ret. Ear. = $50,000 + = + = + = + = + = + = + = + = + = + = + = + = + = + = + = + = + = + = + Rev. - BAUCOM MANUFACTURING CORPORATION Cost Sheets Item Direct Materials Direct Labor Manufacturing Overhead Total Product Cost Job 1 $1,000 2,000 1,200 $4,200 Correct! Job 2 $2,000 4,000 2,400 $8,400 Correct! Job 3 $3,000 2,000 1,200 $6,200 Correct! BAUCOM MANUFACTURING CORPORATION Cost of Goods Manufactured and Sold Beginning Raw Materials Inventory Purchases Raw Materials Available Ending Raw Materials Inventory Raw Materials Used Labor Overhead Total Manufacturing Costs Beginning Work-In-Process Inventory Total Work-In-Process Inventory Ending Work-In-Process Inventory Cost of Goods Manufactured Beginning Finished Goods Goods Available Ending Finished Goods Cost of Goods Sold $7,000 7,000 (1,000) 6,000 8,000 4,300 18,300 6,000 5,900 14,100 - BAUCOM MANUFACTURING CORPORATION Income Statement Sales Revenue Cost of Goods Sold Gross Margin Selling and Administrative Expenses Net Income (400) $3,900 Correct! BAUCOM MANUFACTURING CORPORATION Balance Sheet Assets Cash Raw Materials Inventory Work-In-Process Inventory Finished Goods Inventory Total Assets Equity Common Stock Retained Earnings Total Equity - $50,000 - Exp. (400) (500) = Net Inc. = = = = = = = = = = = = = = = = = = = Given Data P12-13A: BAUCOM MANUFACTURING CORPORATION Issued common stock Raw materials purchase Job 1 Job 2 Job 3 Total Factory overhead rate per direct labor dollar Selling price of Job 3 Selling and administrative expenses Actual factory overhead $50,000 $7,000 Direct Raw Materials Used $1,000 2,000 3,000 $6,000 $0.60 $10,000 $400 $4,300 Direct Labor $2,000 4,000 2,000 $8,000 Student Name: Class: Problem 12-17A BURRIS COMPANY Cost of Production Report Schedule of Equivalent Units Quantities: Beginning Inventory Units Added to Production Total to be Accounted for Transferred to Finished Goods Ending Inventory Total Accounted for Cost Per Unit Cost Accumulation Beginning Inventory Cost Added to Production Total to be Accounted for Cost Per Unit Cost Allocation To Finished Goods To Ending Inventory Total Allocated Cost Actual Equivalent Units Given Data P12-17A: BURRIS COMPANY Beginning work-in-process inventory (units) Additional units started Ending work-in-process inventory Percentage completed in ending work-in-process inventory Cost of raw materials - beginning Additional product costs added 250 2,000 750 40% $6,840 $54,000 Student Name: Class: Problem 12-20A ZEST COLA CORPORATION Cost of Production Report Mixing Department - 2007 Equivalent Units Quantities: Beginning Inventory Units Added to Production Total to be Accounted for Transferred to the Bottling Dept. Ending Inventory Total Accounted for Cost Per Unit Cost Accumulation Beginning Inventory Cost Added to Production Total to be Accounted for Cost Per Unit Cost Allocation To the Bottling Dept. To Ending Inventory Total Allocated Cost Actual Equivalent Units Given Data P12-20A: ZEST COLA CORPORATION Mixing department beginning balances: Cash Raw Materials Inventory Production Supplies Work in Process Inventory Units in Work in Process Common Stock Additional common stock issued Cash paid for raw materials Cash paid for production supplies Raw materials issued to mixing dept. Units started into production Mixing department direct labor (hours) Mixing department indirect labor (hours) Average wage Predetermined overhead rate per direct labor hour Actual overhead costs Units completed in mixing dept. Remaining units - percentage complete Ending balance in supplies account $45,000 14,800 100 48,000 400,000 107,900 $54,000 29,600 800 32,360 800,000 2,200 200 $9.60 $1.60 $1,260 600,000 25% $560 Problem 12-13A Job Order Costing System Baucom Manufacturing Corporation was started with the issuance of common stock for $50,000. It purchased $7,000 of raw materials and worked on three job orders during 2012 for which data follow. (Assume that all transactions are for fash unless otherwise indicated.) Direct Raw Direct Materials Used Labor Job 1 $1,000 $2,000 Job 2 2,000 4,000 Job 3 3,000 2,000 Total $6,000 $8,000 Factory overhead is applied using a predetermined rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $10,000 cash. Baucom paid $400 for selling & administrative expenses. Actual factory overhead was $4,300. Required: A. Record the preceding events in a horizontal statements model. The first event for 2012 has been recorded as an example. Net Assets Equity Rev - Exp = Inc Cash+Raw Mats+MOH+WIP+F.Gds=C.Stk+R.Ear[ $50,000 NA NA NA NA =$50,000 NA NA - NA = NA B. Reconcile all subsidiary accounts with their respective control accounts. C. Record the closing entry for over- or under applied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. D. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2012. Check Figures Given: d. COGM: $14,100. NI: $3,900. My Questions: I have tried to record the given events into the horizontal statements model. Question 1: Should I put in all the NAs? Question 2: Should the MOH be added up all in one or recorded separately as I have done? I would appreciate all your input and I am trying to start early because I may need step by step help on this one