To be solved by AjKaushal See Attached

Accounting Chapter 19 1. Which of the following is the correct flow of manufacturing costs? Raw materials, work in process, finished goods, cost of goods sold Raw materials, finished goods, cost of goods sold, work in process. Work in process, finished goods, raw materials, cost of goods sold Cost of goods sold, raw materials, work in process, finished goods. 2. Selected accounts with a credit amount omitted are presented as follows: Work in Process Apr. 1 Balance 7,000 Apr. 30 30 Direct materials 78,400 30 Direct labor 195,000 30 Factory overhead 136,500 Apr. 1 30 Balance Goods finished Goods finished Finished Goods 42,000 387,000 What was the balance of Work in Process as of April 30? $8,100 $35,00 0 $29,90 0 $22,90 0 3. The recording of the application of factory overhead costs to jobs would include a credit to: X Factory Overhead Wages Payable Work in Process Cost of Goods Sold 4. The source of the data for debiting Work-in-Process for direct materials is the: purchase order purchase requisition materials requisition receiving report 5. The document authorizing the issuance of materials from the storeroom is the: materials requisition purchase requisition receiving report purchase order 6. The proper journal entry to record the purchase of $30,000 of raw materials on account would be: Raw Material Inventory 30,000 Accounts Receivable 30,000 Raw Material Inventory 30,000 Accounts Payable 30,000 Inventory 30,000 Accounts Receivable 30,000 Inventory 30,000 Cash 30,000 7. Which of the following is the correct formula to calculate the predetermined factory overhead rate? Estimated total factory overhead costs divided by estimated activity base. Actual total factory overhead costs divided by estimated activity base. Estimated total factory overhead costs divided by actual activity base. Actual total factory overhead costs divided by actual activity base. 8. The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from work in process to finished goods. Finished Goods 357,000 Work in Process 357,000 Finished Goods 450,000 Work in Process 450,000 Work in Process 450,000 Finished Goods 450,000 Work in Process 357,000 Finished Goods 357,000 9. Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory? Job order cost system General cost system Replacement cost system Process cost system 10. The following budget data are available for Oldest Company: Estimated direct labor hours Estimated direct labor dollars Estimated factory overhead costs 12,000 $90,000 $198,000 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is Answer $7.50 $.13 $.061 $16.5 0 Entries for Costs in a Job Order Cost System Churchill Co. uses a job order cost system. The following data summarize the operations related to production for November: a. Materials purchased on account, $528,000. b. Materials requisitioned, $462,000, of which $58,800 was for general factory use. c. Factory labor used, $545,200, of which $76,400 was indirect. d. Other costs incurred on account for factory overhead, $123,400; selling expenses, $195,500; and administrative expenses, $121,800. e. Prepaid expenses expired for factory overhead were $24,360; for selling expenses, $20,600; and for administrative expenses, $14,900. f. Depreciation of office building was $70,500; of office equipment, $36,120; and of factory equipment, $24,360. g. Factory overhead costs applied to jobs, $300,400. h. Jobs completed, $840,000. i. Cost of goods sold, $740,000. Required: Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". a. Materials purchased on account, $528,000. Entry Description Debit Credit a. ___________ ___________ ______ ______ ___________ ______ ___________ ______ b. Materials requisitioned, $462,000, of which $58,800 was for general factory use. Entr Description Debit Credit y b. _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ c. Factory labor used, $545,200, of which $76,400 was indirect. Entr Description Debit Credit y c. _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ d. Other costs incurred on account for factory overhead, $123,400; selling expenses, $195,500; and administrative expenses, $121,800. Entr Description Debit Credit y d. _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ e. Prepaid expenses expired for factory overhead were $24,360; for selling expenses, $20,600; and for administrative expenses, $14,900. Entr Description Debit Credit y e. _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ f. Depreciation of office building was $70,500; of office equipment, $36,120; and of factory equipment, $24,360. Entr Description Debit Credit y f. _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ _______________ _________________ _________ __ ________ g. Factory overhead costs applied to jobs, $300,400. Entry Description Debit Credit g. ___________ ___________ ______ ______ ___________ ______ h. Jobs completed, $840,000. Entry Description ___________ ______ Debit Credit h. ___________ ___________ ______ ______ ___________ ______ i. Cost of goods sold, $740,000. Entry Description ___________ ______ Debit Credit i. ___________ ___________ ______ ______ ___________ ______ ___________ ______ eBookeBookeBook Problem-Solving StrategyProblem-Solving StrategyProblem-Solving Strategy Entries and Schedules for Unfinished Jobs and Completed Jobs Sinatra Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January 2014, the first month of operations: a. Materials purchased on account, $39,300. b. Materials requisitioned and factory labor used: c. d. e. Factory overhead costs incurred on account, $7,500. Depreciation of machinery and equipment, $2,640. The factory overhead rate is $60 per machine hour. Machine hours used: f. Jobs completed: 201, 202, 203 and 205. g. Jobs were shipped and customers were billed as follows: Job 201, $11,000; Job 202, $14,820; Job 203, $19,920. Required: 1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Entries a. Description _________________ Debit _________________ _________________ b. _________________ Credit _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________ _________________ c. _________________ _________________ _________________ _________________ _________________ _________________ d. _________________ _________________ _________________ _________________ e. _________________ _________________ _________________ _________________ f. _________________ _________________ _________________ _________________ g. Sale _________________ _________________ _________________ _________________ _________________ g. Cost _________________ _________________ _________________ _________________ 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. Work in Process ___________ ___________ ___________ ___________ ______ ______ ______ ______ ___________ ___________ ______ ______ Bal. ___________ ______ Finished Goods ___________ ___________ ___________ ___________ ______ ______ ______ ______ Bal. ___________ ______ 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Sinatra Industries Inc. Schedule of Unfinished Jobs Job Direct Direct Factory Materia Labor Overhe Total ls ad $ $ $ $ ______ ______ _____ ______ ______ _____ ______ ______ _____ ______ ______ _____ ______ ______ _____ ______ ______ _____ Balance $ of Work in Process, January 30 ______ ______ ______ ______ _____ _____ _________________ ______ ______ _____ ______ ______ _____ 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Sinatra Industries Inc. Schedule of Completed Jobs Direct Factory Direct Job Materia Overhe Labor ls ad $ $ $ ______ ______ ______ ______ ______ ______ _____ _____ _____ Total $ ______ ______ _____ ______ ______ _____ eBookeBookeBook Problem-Solving StrategyProblem-Solving StrategyProblem-Solving Strategy Job Order Cost Sheet Cheng Furniture Company refinishes and reupholsters furniture. Cheng Furniture uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On September 3, 2014, an estimate of $3,050 for reupholstering a sofa and loveseat was given to John Jobs. The estimate was based on the following data: On September 6, the sofa and loveseat were picked up from the residence of John Jobs, 220 Apple Lane, Cupertino, CA, with a commitment to return it on October 31. The job was completed on October 28. The related materials requisitions and time tickets are summarized as follows: Required: Hint(s) Enter amounts as positive numbers. 1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer. 2. Record the costs incurred, and complete the job order cost sheet. JOB ORDER COST SHEET Customer John Jobs Date Sept. 3, 2014 Address 220 Apple Lane Date wanted Oct. 31, 2014 Cupertino, CA Date completed Oct. 28, 2014 Reupholster sofa and loveseat Job. No. Item ESTIMATE Direct Materials Direct Labor Summary Amount 40 meters at $25 Amount 30 hours at $30 Amount _________________ _________________ Total cost _________________ _______________ __ Total _______________ _________________ Factory Overhead Total Direct Materials Direct Labor _______________ __ _______________ __ __ ACTUAL Direct Materials Direct Labor Mat. Req. No. Description 508 18 Meters at $ 25 Summary Amount Time Ticket No. _________________ H40 Description Amount 14 Hours at $ 30 Item Amount Direct Materials _______________ __ _______________ __ Direct Labor _______________ __ 510 Total 25 Meters at $ 25 _________________ H43 20 Hours at $ 30 Factory Overhead _______________ __ _________________ Total _______________ __ Total Cost _______________ __ _______________ __ Hint(s) What is the best explanation for the variances between actual costs and estimated costs. (For this purpose, assume that three meters of materials were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.) a. The direct materials cost exceeded the estimate by $75 because 3 meters of materials were spoiled. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. b. Management didn't provide enough direction to complete tasks on budget. c. The direct materials cost exceeded the estimate by $75 because 3 meters of materials were spoiled. d. The direct labor cost exceeded the estimate by $120 because an additional 4 hours of labor were used by an inexperienced employee. Select the correct answer from the above choices. _________________