PROBLEM 3-7 ACCOUNTING 232 JOB ORDER COSTING Preduct- A DIRECT MATERIALS-QUANTITY PER UNIT UNIT COST TOTAL UNIT MATERIAL COST 10 $20.00 PRODUCT LABOR HOURS PER UNIT LABOR RATE PER HOUR TOTAL UNIT LABOR COST 20 $10.00 APPLIED MANUFACTURING OVERHEAD UNIT COST TOTAL PRODUCT COST QUANTITY TO BE PRODUCED SELLING PRICE-THREE TIMES UNIT COST MANUFACTURING OVERHEAD COST: 15,000 6. DEPRECIATION 7. UTILITIES &. SUPPLIES 9. TAXES 10. INSURANCE 350,000 50,000 200,000 100,000 100,000 ESTIMATED TOTAL COST ESIMATED TOTAL LABOR HOURS PREDERTERMINED OH RATE $800,000 300,000 214 Page Transactions ISSUED COMMON STOCK WORTH S 3,200,000 1. ON ACCOUNT 165,000 UNITS OF RAW MATERIALS AT $20.00 EACH TRANSFERRED 150,000 UNITS TO WORK-IN-PROCESS D 300,000 LABOR HOURS AT $10.00 PER HOUR TO BE PAD LATER (Hin: wayges payable) APPLIED MANUFACTURING OVERHEAD FOR 300,000 HOURS PLETED 15000 UNITS WITH TOTAL LABOR AND MANUFACTURING OVERHEAD CHARGED TO 15000 COMPLETED UNITS 7 SOLD 14000 UNITS ON ACCOUNT 1, & ACTUAL MANUFACTURING OVERHEAD INCURRED (Hint: Depreciation is not credited to cash) i. Depreciation 280,000 80,000 120,000 55,000 45,000 i. Utilities ii. Supplies iv. Taxes v. Insurance 9. PREPARE JOURNAL ENTRY FOR OVERAPPLIED /UNDERAPPLIED OVERHEAD IF ANY 10, SELLING EXPENSES INCURRED IS 10% OF TOTAL SALES-PAID IN CASH 11. OFFICE EXPENSES INCURRED IS 1,000,000-PAID IN CASH RFOURED; 1. COMPLETE JOURNAL ENTRIES 2. POST JOURNAL ENTRIES TO THE LEDGER 3. PREPARE TRIAL BALANCE . PREPARE COST OF GOODS MANUFACTURED STATEMENT S. PREPARE COST OF GOODS SOLD STATEMENT 6. PREPARE INCOME STATEMENT TPREPARE SIATEMENT OF RETAINED EARNINGS 2151Page