Solutions Chap 2 - EXERCISE 2-3(a 1 $15,200 or($5,000...

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EXERCISE 2-3 (a) 1. $15,200, or ($5,000 + $6,000 + $4,200). 2. Last year 70%, or ($4,200 ÷ $6,000); this year 80% (either $6,400 ÷ $8,000 or $3,200 ÷ $4,000). (b) Jan. 31 Work in Process Inventory ....................... 8,000 Raw Materials Inventory .................... 8,000 31 Work in Process Inventory ....................... 12,000 Factory Labor ..................................... 12,000 31 Work in Process Inventory ....................... 9,600 Manufacturing Overhead .................. 9,600 31 Finished Goods Inventory ........................ 44,800 Work in Process Inventory ............... 44,800 EXERCISE 2-4 (a) + $50,000 + $42,500 = $165,650 (a) = $73,150 $165,650 + (b) = $201,500 (b) = $35,850 $201,500 – (c) = $192,300 (c) = $9,200
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EXERCISE 2-4 (Continued) [Note : The instructions indicate that manufacturing overhead is applied on the basis of direct labor cost, and the rate is the same in all cases. From Case A, a student should note the overhead rate to be 85%, or ($42,500 ÷ $50,000).] (d) = .85 X $100,000 (d) = $85,000 $83,000 + $100,000 + $85,000= (e) (e) = $268,000 $268,000 + $15,500 = (f) (f) = $283,500 $283,500 – $11,800 = (g) (g) = $271,700 [Note : (h) and (i) are solved together.] (i) = .85(h) $63,150 + (h) + .85(h) = $250,000 1.85(h) = $186,850 (h) = $101,000 (i) = $85,850 (j) = $250,000 + $18,000
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