Mang ACC 2 - CHAPTER 2 EXERCISE 2-2 (a) May 31 Work in...

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CHAPTER 2 EXERCISE 2-2 (a) May 31 Work in Process Inventory. ................... 10,400 Manufacturing Overhead. ...................... 800 Raw Materials Inventory. ................ 11,200 31 Work in Process Inventory. ................... 13,000 Manufacturing Overhead. ...................... 1,200 Factory Labor. ................................. 14,200 31 Work in Process Inventory. .................... 11,700 ($13,000 X 90%) Manufacturing Overhead. ............... 11,700 31 Finished Goods Inventory. ..................... 9,060 Work in Process Inventory. ............ 9,060 ($2,000 + $2,500 + $2,400 + $2,160)* *$2,400 X 90% (b) Work in Process Inventory May 1 Balance 3,200 31 10,400 31 13,000 31 11,700 May 31 9,060 May 31 Balance 29,240 Job Cost Sheets Job No. Beginning Work in Process Direct Material Direct Labor Manufacturing * Overhead Total 430 431 $1,200 0 $3,500 4,400 $ 3,000 7,600 $2,700 6,840 $10,400 18,840
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$1,200 $7,900 $10,600 $9,540 $29,240 * Direct labor X .90
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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 [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).]
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(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)
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This note was uploaded on 07/26/2008 for the course ACC 102 taught by Professor Smith during the Spring '08 term at Siena College (Loudonville).

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Mang ACC 2 - CHAPTER 2 EXERCISE 2-2 (a) May 31 Work in...

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