problem 5-21
Tant for each account on the company balance sheet, and enter the begin r cas news Prepare a Ta they and Cool Gods low the al is directly into the accounts for the transactions given above. Create new T. Determine an ending balance for each T-account acturing overhead underapplied or overapplied for the yeart Assume that the con overhead balance among the Work in Process, Finished Goods and Cost of using the overall balances in each account. Prepare a journal entry to sh Round allocation percentages to one decimal place) we an income statement for the year. (Do not prepare a schedule of cost of goods of the information needed for the income statement is available in the Taccounts BOLES T-Accounts; Overhead Rates: Journal Entries |LO3, LO4, LOS, L07) Company uses a job order costing system. Only three jobs Job 105, Job 106, and Job 107 waded on during November and December. Job 105 was completed on December 10, the other were still in production on December 31. the end of the company's operating year. Data sheets of the three jobs follow: Job Cost Sheet Job 106 Job 105 Job 107 $ 0 $16.500 $13,000 $20.800 $ 9.300 $ 7.000 $11.200 50 S 0 amber costs incurred: Direct materials Direct labour... Manufacturing overhead December costs incurred: Direct materials. Direct labour. Manufacturing overhead ... S 0 $ 4,000 $ 8.200 $ 6,000 $21.300 S10,000 Chapter Systems Design Job Order Costing applied to jobs on the The following additional information is available: Manufacturing overcas applied to jobs sis of direct labour cost. Balances in the inventory accounts at November 10 were as follows Resean $40,000 Direct Materi Direct $85.000 Raw Materials Weckis Process Finished Goods Required: ods and Manufacturing case of Work in Process 1 Comp Depar Using What the ce At th all cu Required: Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Me Overhead Enter the November 30 inventory balances given above, in the case of Work in compute the November 20 balance and enter it into the Work in Process T-account 2 Prepare journal entries for December as follows: Prepare an entry to record the issue of materials into production, and post the entry to priate T-accounts. In the case of direct materials, it is not necessary to make a separate for cach job) Indirect materials used during December totalled $4.000 Prepare an entry to record the incurrence of labour cost, and post the entry to apprecis T-accountIn the case of direct labour cost, it is not necessary to make a separate entry cach job. ) Indirect labour cost totalled $8.000 for December Prepare an entry to record the incurrence of $19,000 in various actual manufacturing costs for December (credit Accounts Payable). Post this entry to the appropriate T-accounts Whatapparent predetermined overhead rate does the company use to assign overhead cost to ih Using this rate, prepare a journal entry to record the application of overhead cost to jobs for December it is not necessary to make a separate entry for each job). Post this entry to the anon ate Taccounts De 4. As stated earlier, Job 105 was completed during December. Prepare a journal entry to show the transfer of this job off the production line and into the finished goods warehouse. Post the entry to the appropriate Tacit. 5. Determine the balance at December 31 ia the Wire Process inventory account. How much of this balance consists of charged to job 1067 Job 107? Detern PROBLEM 5-22 M tiple Departments: Overhead Rates: Underapplied or Overapplied Overhead 10 Winder, Knotter, and Nata l ia firm that has 10 partners and 10 support people. The firm cm ploys a job-order costing yet t casi chargeable to cach client, and it is organized into two departments - the Research an Documents Department and the Litigation Department. The fimm uses predetermined overhead to the the cost of these departments to its clients. At the begin ning of the current year, the fin a ncement de the following estimates for the year. PROH Overts Heave tions displa has b show the c in ter Department Research and Documents Litigation Research-hours.... Direct lawyer-hours...... Materials and supplies........ Direct lawyer cost. Departmental overhead cost ... 20,000 9,000 $ 18,000 $430,000 $700.000 16,000 $ 5,000 $800,000 $320,000
