PROBLEM 3-8 ACCOUNTING 232 JOB ORDER COSTING Product-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 25,000 SELLING PRICE-THREE TIMES UNIT COST L he. MANUFACTURING OVERHEAD COST: 1. DEPRECIATION 2. UTILITIES 3. SUPPLIES 4. TAXES 5. INSURANCE $400,000 150,000 150,000 100,000 200,000 ESTIMATED TOTAL COST ESIMATED TOTAL LABOR HOURS PREDERTERMINED OH RATE $1,000,000 500,000 Transactions: I6I Page SSUED COMMON STOCK WORTH S 5,00000 BURCHASED ON ACCOUNT 30000 UNITS OF RAW MATERIALS AT 2. PURCHA $20.00 EACH SFERRED 250,000 UNITS TO WORK-IN-PROCESS URRED 500,000 LABOR HOURS AT $10.00 PER HOUR TO BE PAID 3. TRANS LATER (Hint: wages payable) 5. APPLIED MANUFACTURING OVERHEAD FOR 500,000 HOURS COMPLETED 22000 UNITS WITH TOTAL LABOR AND MANUFACTURING OVERHEAD CHARGED TO 22000 COMPLETED UNITS 7. SOLD 20000 UNITS ON ACCOUNT & ACTUAL MANUFACTURING OVERHEAD INCURRED (Hint:Depreciation is not credited to cash) i. Depreciation ii. Utilities iii. Supplies iv. Taxes v. Insurance 500,000 200,000 210,000 250,000 90,000 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 REQUIRED 1. COMPLETE JOURNAL ENTRIES 2 POST JOURNAL ENTRIES TO THE LEDGER .PREPARE TRIAL BALANCE REPARE COST OF GOODS SOLD STATEMENT REPARE INCOME STATEMENT E COST OF GOODS MANUFACTURED STATEMENT PREPARE STATEMENT OF RETAINED EARNINGS 8, PREPARE BALANCE SHEET 217/Page