Chapter 7 Solutions.pdf - Chapter 7 Class Discussion...

This preview shows page 1 - 6 out of 13 pages.

Chapter 7 Class Discussion Problem Solutions 7-22 Assigning Costs to Jobs: Sunset Products. a. 1. Materials Inventory ................................................................................30,000 Accounts Payable ..............................................................................30,000 2. Manufacturing Overhead Control ........................................................1,500 Materials Inventory ............................................................................1,500 3. Materials Inventory ................................................................................37,500 Accounts Payable ..............................................................................37,500 4. Accounts Payable...................................................................................30,000 Cash......................................................................................................30,000 5. Work-in-ProcessDirect Materials ......................................................45,000 Materials Inventory ............................................................................45,000 6. Work-in-ProcessDirect Labor.............................................................37,500 Wages Payable...................................................................................37,500 7. Manufacturing Overhead Control ........................................................42,250 Cash......................................................................................................42,250 8. Work-In-ProcessOverhead ($37,500 x 140%) ...............................52,500 Applied Manufacturing Overhead ..................................................52,500 9. Manufacturing Overhead Control ........................................................7,500 Accumulated DepreciationProperty, Plant, and Equipment.......................................................................................7,500 b. Materials Inventory Balance 3/1 13,500 1,500 (2) Ind. materials (1) 30,000 45,000 (5) Direct materials (3) 37,500 Balance 3/31 34,500 * *$34,500 = $13,500 + $30,000 + $37,500 $1,500 $45,000
Work-in-process inventory Balance 3/1 24,750 (5) Direct materials 45,000 77,250 Per Finished (6) Direct labor 37,500 Goods T-account (8) Overhead applied 52,500 Balance 3/31 82,500 Manufacturing Overhead Control (2) 1,500 (7) 42,250 (9) 7,500 Applied Manufacturing Overhead 52,500 (8) Accounts Payable (4) 30,000 30,000 (1) 37,500 (3) Cash 30,000 (4) 42,250 (7) Wages Payable 37,500 (6) Accumulated DepreciationProperty, Plant, and Equipment 7,500 (9) Finished Goods Inventory Balance 3/1 97,500 Goods completed 77,250 *120,000 Transfer to Cost Balance 3/31 54,750 of Goods Sold *$77,250 = $54,750 + $120,000 $97,500
Cost of Goods Sold Balance 3/31 120,000 7-23 Assigning Costs to Jobs: Forest Components. a. 1. Materials Inventory ................................................................................119,000 Accounts Payable ..............................................................................119,000 2. Work-in-ProcessDirect Materials ......................................................117,600 Materials Inventory ............................................................................117,600 3. Manufacturing Overhead Control ........................................................8,400 Materials Inventory ............................................................................8,400 4. Accounts Payable...................................................................................119,000 Cash......................................................................................................119,000 5. Materials Inventory ................................................................................15,400 Work-in-ProcessDirect Materials .................................................15,400 6. Work-in-ProcessDirect Labor.............................................................217,000 Cash......................................................................................................217,000 7. Manufacturing Overhead Control ........................................................120,400 Accounts Payable ..............................................................................120,400 8. Manufacturing Overhead Control ........................................................245,000 Accumulated DepreciationPlant ..................................................245,000 9. Work-In-ProcessOverhead ($217,000 x 93%)* .............................201,810 Applied Manufacturing Overhead ..................................................201,810 * The predetermined rate is 93% (= $2,790,000 ÷ $3,000,000).
b. Materials Inventory Balance 7/1 79,800 * (1) 119,000 117,600 (2) Direct materials (5) 15,400 8,400 (3) Indirect materials Balance 7/31 88,200 * Beginning Balance = Ending Balance Additions + Uses $79,800 = $88,200 $119,000 $15,400 + $117,600 + $8,400 Work-in-process inventory Balance 7/1 105,490* (2) Direct materials 117,600 15,400 (5) (6) Direct labor 217,000 553,000 Transferred to (9) Overhead applied 201,810 Finished Goods Balance 7/31 73,500 *$105,490 = $73,500 $117,600 $217,000 $201,810 + $15,400 + $553,000 Manufacturing Overhead Control (3) 8,400 (7) 120,400 (8) 245,000 Applied Manufacturing Overhead 201,810 (9) Accounts Payable (4) 119,000 119,000 (1) 120,400 (7) Cash 119,000 (4) 217,000 (6)
Accumulated DepreciationProperty, Plant, and Equipment 245,000 (8) Finished Goods Inventory Balance 7/1 18,200 Goods completed 553,000 *521,500 Transfer to Cost Balance 7/31 49,700 of Goods Sold *$553,000 = $49,700 + $521,500 $18,200 Cost of Goods Sold Balance 7/31 521,500 7-27 Predetermined Overhead Rates: Dixboro Company.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture