The University of

ConcordConcord

Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs). The following data (in thousands) pertain to

20172017:

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.Requirement 1. Identify the components of the overview diagram of the job-costing system at the University of

ConcordConcord

Press.

A

}

B

down arrow

A
B

C

}

D

down arrow

C
D

E

}

F

G

E
F
G

H

}

up arrow

I

up arrow

J

H
I
J

Requirement 2. Prepare journal entries to summarize the

20172017

transactions. As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be

omitted.(Record

debits first, then credits. Exclude explanations from any journal entries.)Direct materials and supplies purchased on credit,

$ 880$880.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(1)

Record the direct materials used,

$ 730$730.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(2)

Record the indirect materials used,

$ 170$170.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(3)

Record the cost of the direct and indirect labor used in production,

$ 1 comma 310$1,310

and

$ 990$990,

respectively. (Combine the entries to record direct and indirect labor into one entry.)

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(4)

Record the entry for depreciation,

$ 440$440.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(5)

Record the miscellaneous manufacturing overhead costs,

$ 590$590.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(6)

Record the allocation of the manufacturing overhead.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(7)

Record the cost of goods manufactured,

$ 4 comma 120$4,120.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(8)

Record the revenues,

$ 8 comma 800$8,800.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(9)

Record the cost of goods sold,

$ 4 comma 030$4,030.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(10)

Dispose of the year-end under- or overallocated manufacturing overhead.

Journal Entry
		Accounts	Debit	Credit
			(In thousands)
(11)

Requirement 3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.

Post entries (1) through (11) to the accounts below, then calculate the ending balance in each account. The beginning balances have been entered, now enter the apppropriate amounts into the T-accounts from the journal entries. (For accounts with a $0 balance leave the balance line blank.)

Review the journal entries

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from requirement 2.

Work-in-Process

Manufacturing

Materials Control

Control

Overhead Control

Bal.

150

Bal.

70

Bal.

Bal.

Bal.

Bal.

Bal.

Bal.

Finished Goods

Manufacturing

Control

Cost of Goods Sold

Overhead Allocated

Bal.

560

Bal.

Bal.

Bal.

Bal.

Bal.

Bal.

Requirement 4. How did the University of

ConcordConcord

Press perform in

20172017?

(Round your answer to the nearest whole percent.)

Concord Press' gross margin percentage of			% is		This indicates that University of Concord Press
	in 2017. Gross margins above 30% are generally considered very good.

Choose from any list or enter any number in the input fields and then continue to the next question.