Q1. Cost of Materials Issuances Under the FIFO Method

An incomplete subsidiary ledger of materials inventory for May is as follows:

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a. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO.

Received		Issued		Balance
Receiving Report Number	Quantity	Unit Price		Materials Requisition Number	Quantity	Amount		Date	Quantity	Unit price	Amount
								May 1	320	$9	$2,880
26	220	$11						May 4	fill in the blank 7cb8e202cff4033_1	fill in the blank 7cb8e202cff4033_2	fill in the blank 7cb8e202cff4033_3
									fill in the blank 7cb8e202cff4033_4	fill in the blank 7cb8e202cff4033_5	fill in the blank 7cb8e202cff4033_6
				107	360	$fill in the blank 7cb8e202cff4033_7		May 10	fill in the blank 7cb8e202cff4033_8	fill in the blank 7cb8e202cff4033_9	fill in the blank 7cb8e202cff4033_10
32	150	13						May 21	fill in the blank 7cb8e202cff4033_11	fill in the blank 7cb8e202cff4033_12	fill in the blank 7cb8e202cff4033_13
									fill in the blank 7cb8e202cff4033_14	fill in the blank 7cb8e202cff4033_15	fill in the blank 7cb8e202cff4033_16
				120	210	fill in the blank 7cb8e202cff4033_17		May 27	fill in the blank 7cb8e202cff4033_18	fill in the blank 7cb8e202cff4033_19	fill in the blank 7cb8e202cff4033_20

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b. Determine the materials inventory balance at the end of May. $fill in the blank 13f0c1fdcfbcfdb_1

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c. Journalize the summary entry to transfer materials to work in process. If an amount box does not require an entry, leave it blank.

blank	CashFactory OverheadFinished GoodsMaterialsWork in Process	- Select -	- Select -
	CashFactory OverheadFinished GoodsMaterialsWork in Process	- Select -	- Select -

Q2. Entry for Issuing Materials

Materials issued for the current month are as follows:

Requisition No.	Material	Job No.	Amount
103	Plastic	400	$26,710
104	Steel	402	37,890
105	Glue	Indirect	2,460
106	Rubber	403	3,290
107	Titanium	404	85,670

Journalize the entry to record the issuance of materials. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableAccounts ReceivableCashMaterialsWork in Process	- Select -	- Select -
	Accounts PayableCashFactory OverheadMaterialsWages Payable	- Select -	- Select -
	Accounts PayableCashFactory OverheadMaterialsWork in Process	- Select -	- Select -

Q3. Entry for Factory Labor Costs

A summary of the time tickets for the current month follows:

Job No.	Amount
100	$2,250
101	1,870
104	3,420
108	3,890
Indirect labor	11,990
111	2,370
115	1,560
117	10,540

Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashMaterialsWages PayableWork in Process	- Select -	- Select -
	Accounts PayableCashFactory OverheadMaterialsWages Payable	- Select -	- Select -
	Accounts PayableCashFactory OverheadWages PayableWork in Process	- Select -	- Select -

Q4. Entries for Direct Labor and Factory Overhead

Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:

Job 201	$4,200
Job 202	2,100
Job 203	1,660
Job 204	3,080
Factory supervision	1,440

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $28 per direct labor hour. The direct labor rate is $16 per hour. If required, round final answers to the nearest dollar.

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a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashMaterialsWages PayableWork in Process	- Select -	- Select -
	Accounts PayableAccounts ReceivableCashFactory OverheadWages Payable	- Select -	- Select -
	Accounts PayableFactory OverheadMaterialsWages PayableWork in Process	- Select -	- Select -

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b. Journalize the entry to apply factory overhead to production for November. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashFactory OverheadWages PayableWork in Process	- Select -	- Select -
	Accounts ReceivableFactory OverheadMaterialsWages PayableWork in Process	- Select -	- Select -

Q5. eBook

Show Me How

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Predetermined Factory Overhead Rate

Road Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:

Engine parts	$1,449,500
Shop direct labor	1,058,000
Shop and repair equipment depreciation	73,800
Shop supervisor salaries	205,300
Shop property taxes	37,300
Shop supplies	28,600
Advertising expense	29,000
Administrative office salaries	124,700
Administrative office depreciation expense	15,900
	Total costs and expenses	$3,022,100

The average shop direct labor rate is $23 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $fill in the blank 1 per direct labor hour

Q6. Predetermined Factory Overhead Rate

Novello Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On January 1 of the current year, the annual operating room overhead is estimated to be:

Disposable supplies	$247,700
Depreciation expense	44,700
Utilities	26,000
Nurse salaries	371,900
Technician wages	121,700
	Total operating room overhead	$812,000

The overhead costs will be assigned to procedures based on the number of surgical room hours. Novello Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs.

a. Compute the estimated number of operating room hours for the year. fill in the blank 1 hours

b. Determine the predetermined operating room overhead rate for the year. $fill in the blank 2 per hour

c. Conrad Goldsmith had a 5-hour procedure on January 22. How much operating room overhead would be charged to his procedure, using the rate determined in part (b)? $fill in the blank 3

d. During January, the operating room was used 194 hours. The actual overhead costs incurred for January were $55,000. Determine the overapplied operating overhead or underapplied operating overhead for the period. $fill in the blank 4

overappliedunderapplied