problem # 5-20
ur a $10000 payment can the year $197.22 er the year wallets trial bulance, and enter trials w Gel S the w Po S pre new 7- Find the ending balance in rapplied for the year? M schedule of co available in Para Require Pre M e es p lied or overated ome or the years or prepare a sch e re the information the come statement is avail LOS, LO 3. Was T Phone at rent year, appes below few hours to month on shops charged to 550.000 in manufac transactions were alloca Sold locatie Prepa tured 4. PROBLEM. Cost House Income Statement LO3, LOS Ponedes and face movie pro s k upa of starfighter The con le stras of way I, the beginning of the current Since the propisane design and my require anything from a few tocamp O s obnosting system. Overhead in the fabrication on the basis hours. The company estimated that it would incur overhead Si d st labour cost during the year. The following tra ased on account: $80.000 is amount was for india PROBLE Kenwort were we during the year labour. $30,000, and sin two job the job Raw materials such as wood paints and metal sheeting. were purchased on Raw erials were issued to production: S90.000 (35,000 of this am and administratives c perations, and $800 related r oll costs were incurred and paid: direct labour, $120,000; indirect lahou. and administrative salaries, $75.000 Fabrication shop utilities costs were incurred: $12,000. Depreciation was recorded for the year: $30,000 ($5,000 on selling and admi $25,000 or fabrication shop assets). Prepaid insurance expired: 54.800 (54,000 related to fabrication shop operations, and to selling and administrative activities). Shipping expenses were incurrad: S40,000 Other manufacturing overhead costs were incurred: $17,000 (credit Accounts Payable A Manufacturing overhead was applied to production. Overhead is applied on the basis of di bour cost. Movie props that cost $310,000 to produce according to their job cost sheets were completed. Sales for the year totalled $450,000 and were all on account. The total cost to produce these movie props was $300,000 according to their job cost sheets. 2 Collections on account from customers totalled $445,000. m. Payments on account to suppliers totalled S150,000. Chapter Systems Design Job Order Costing POH Inc. Balance Sheet January 1 SI Current assets Cash Accounts receivable Inventories Raw materials... Work in process Finished goods props awaiting Prepaid insurance ...... . Tocal current asset... Buildings and equipment.... Less accumulated depreciation... Total assets.. . .. Liabilities and Shareholders' Equity Accounts payable..... Capital stock........ $250,000 Retained earnings.... 125.000 Total liabilities and shareholders' equity. 375.000 $450.000 Required: Prepare a T-account for each account on the company's balance sheet, and enter the beginning bal ances 2 Make entries directly into the T-accounts for the transactions given above. Create new T-accounts as needed. Determine an ending balance for each T-account. 3 Was manufacturing overhead underapplied or overapplied for the year? Assume that the company allocates any overhead balance among the Work in Process, Finished Goods, and Cost of Goods Sold accounts, using the overall balances in each account. Prepare a journal entry to show the al location. (Round allocation percentages to one decimal place.) 4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufac- tured; all of the information needed for the income statement is available in the T-accounts.) PROBLEM 5-21 T-Accounts; Overhead Rates; Journal Entries [LO3, L04, LO5, L07] Kenworth Company uses a job-order costing system. Only three jobs - Job 105, Job 106, and Job 107- were worked on during November and December. Job 105 was completed on December 10, the other two jobs were still in production on December 31, the end of the company's operating year. Data from the job cost sheets of the three jobs follow: Job Cost Sheet ur a $10000 payment can the year $197.22 er the year wallets trial bulance, and enter trials w Gel S the w Po S pre new 7- Find the ending balance in rapplied for the year? M schedule of co available in Para Require Pre M e es p lied or overated ome or the years or prepare a sch e re the information the come statement is avail LOS, LO 3. Was T Phone at rent year, appes below few hours to month on shops charged to 550.000 in manufac transactions were alloca Sold locatie Prepa tured 4. PROBLEM. Cost House Income Statement LO3, LOS Ponedes and face movie pro s k upa of starfighter The con le stras of way I, the beginning of the current Since the propisane design and my require anything from a few tocamp O s obnosting system. Overhead in the fabrication on the basis hours. The company estimated that it would incur overhead Si d st labour cost during the year. The following tra ased on account: $80.000 is amount was for india PROBLE Kenwort were we during the year labour. $30,000, and sin two job the job Raw materials such as wood paints and metal sheeting. were purchased on Raw erials were issued to production: S90.000 (35,000 of this am and administratives c perations, and $800 related r oll costs were incurred and paid: direct labour, $120,000; indirect lahou. and administrative salaries, $75.000 Fabrication shop utilities costs were incurred: $12,000. Depreciation was recorded for the year: $30,000 ($5,000 on selling and admi $25,000 or fabrication shop assets). Prepaid insurance expired: 54.800 (54,000 related to fabrication shop operations, and to selling and administrative activities). Shipping expenses were incurrad: S40,000 Other manufacturing overhead costs were incurred: $17,000 (credit Accounts Payable A Manufacturing overhead was applied to production. Overhead is applied on the basis of di bour cost. Movie props that cost $310,000 to produce according to their job cost sheets were completed. Sales for the year totalled $450,000 and were all on account. The total cost to produce these movie props was $300,000 according to their job cost sheets. 2 Collections on account from customers totalled $445,000. m. Payments on account to suppliers totalled S150,000. Chapter Systems Design Job Order Costing POH Inc. Balance Sheet January 1 SI Current assets Cash Accounts receivable Inventories Raw materials... Work in process Finished goods props awaiting Prepaid insurance ...... . Tocal current asset... Buildings and equipment.... Less accumulated depreciation... Total assets.. . .. Liabilities and Shareholders' Equity Accounts payable..... Capital stock........ $250,000 Retained earnings.... 125.000 Total liabilities and shareholders' equity. 375.000 $450.000 Required: Prepare a T-account for each account on the company's balance sheet, and enter the beginning bal ances 2 Make entries directly into the T-accounts for the transactions given above. Create new T-accounts as needed. Determine an ending balance for each T-account. 3 Was manufacturing overhead underapplied or overapplied for the year? Assume that the company allocates any overhead balance among the Work in Process, Finished Goods, and Cost of Goods Sold accounts, using the overall balances in each account. Prepare a journal entry to show the al location. (Round allocation percentages to one decimal place.) 4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufac- tured; all of the information needed for the income statement is available in the T-accounts.) PROBLEM 5-21 T-Accounts; Overhead Rates; Journal Entries [LO3, L04, LO5, L07] Kenworth Company uses a job-order costing system. Only three jobs - Job 105, Job 106, and Job 107- were worked on during November and December. Job 105 was completed on December 10, the other two jobs were still in production on December 31, the end of the company's operating year. Data from the job cost sheets of the three jobs follow: Job Cost Sheet
