ch3 - SolutiontoChapter3 E323,24,26,28,30,E338,31,33,P345...

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Solution to Chapter 3 E3‐23,24,26,28,30, E3‐38,31,33, P3‐45 EXERCISE 3-23 (10 MINUTES) 1. Process 2. Job-order 3. Job-order (contracts or projects) 4. Process 5. Process 6. Job-order 7. Process 8. Job-order (contracts or projects) 9. Process 10. Job-order EXERCISE 3-24 (20 MINUTES) 1. Raw-material inventory, January 1. .................................................................... $174,200 Add: Raw-material purchases. ............................................................................ 248,300 Raw material available for use. ........................................................................... $422,500 Deduct: Raw-material inventory, January 31 . ................................................... 161,200 Raw material used in January. ............................................................................ $261,300 Direct labor . .......................................................................................................... 390,000 Total prime costs incurred in January. .............................................................. $651,300 2. Total prime cost incurred in January. ................................................................ $651,300 Applied manufacturing overhead (70% × $390,000). ........................................ 273,000 Total manufacturing cost for January. ............................................................... $924,300
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EXERCISE 3-24 (CONTINUED) 3. Total manufacturing cost for January. ............................................................... $ 924,300 Add: Work-in-process inventory, January 1. ..................................................... 305,500 Subtotal. ................................................................................................................ $1,229,800 Deduct: Work-in-process inventory, January 31 . ............................................. 326,300 Cost of goods manufactured . ............................................................................. $ 903,500 4. Finished-goods inventory, January 1 . ............................................................... $ 162,500 Add: Cost of goods manufactured. .................................................................... 903,500 Cost of goods available for sale. ........................................................................ $1,066,000 Deduct: Finished-goods inventory, January 31. ............................................... 152,100 Cost of goods sold. .............................................................................................. $ 913,900 Since the company accumulates overapplied or underapplied overhead until the end of the year, no adjustment is made to cost of goods sold until December 31. 5. Applied manufacturing overhead for January . ................................................. $273,000 Actual manufacturing overhead incurred in January. ...................................... 227,500 Overapplied overhead as of January 31 . ........................................................... $ 45,500
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This note was uploaded on 04/21/2010 for the course ACCT 621 taught by Professor Crotter during the Spring '10 term at UPenn.

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ch3 - SolutiontoChapter3 E323,24,26,28,30,E338,31,33,P345...

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