Ch.3 solutions - BUSI0027 Management Accounting I Solutions...

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BUSI0027 Management Accounting I Solutions to Ch.3 Assignments E3-19 Req. 1 Job Cost Record for Job #310 Direct Materials: Total Lumber: 50 units at $9.00 per unit $450 Padding: 15 yards at $20 per yard $300 Upholstery fabric: 30 yards at $25 per yard $750 Total Direct Materials $1,500 Direct Labor: Vince Owens: 10 hours at $10 per hour $100 Patrick Erin: 15 hours at $15 per hour $225 Total Direct Labor $ 325 Manufacturing Overhead Allocated: 80% of Direct Labor Cost (80% × $325) $ 260 Total Job Cost $2,085 Req. 2 Sales price per recliner $ 600 Cost per recliner ($2,085 total job cost ÷ 5 recliners) (417 ) Gross profit per recliner $ 183 Req. 3 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT a. Work in Process Inventory 1,500 Raw Materials Inventory 1,500 b. Work in Process Inventory 325 Manufacturing Wages 325 c. Work in Process Inventory 260 Manufacturing Overhead 260
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d. Finished Goods Inventory 2,085 Work in Process Inventory 2,085 e. Accounts Receivable 3,000 Sales Revenue
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This note was uploaded on 04/15/2009 for the course ACCOUNTING BUSI0027 taught by Professor Guan during the Spring '09 term at HKU.

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Ch.3 solutions - BUSI0027 Management Accounting I Solutions...

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