Chapter_19_Solutions_7e

Chapter_19_Solutions_7e - Chapter 19 Job Costing Quick...

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Chapter 19 Job Costing Quick Check Answers: 1. c 3. b 5. d 7. a 9. d 2. c 4. a 6. d 8. c 10. b Explanations: 5. d. Predetermined manufacturing = $90 million overhead rate 10 million machine hours = $9 / machine hour 6. d. Actual manufacturing overhead = Indirect labor ($10) + Depreciation on plant ($47) + Machinery repair ($15) + Plant supplies ($5) + Plant utilities ($8) = $85 7. a. Allocated manufacturing = 12 million machine hours overhead × $9 / machine hour = $108 million Chapter 19 Job Costing 147
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Short Exercises (5 min.) S 19-1 a. A manufacturer of plywood would use process costing . b. A manufacturer of wakeboards would use process costing . c. A manufacturer of luxury yachts would use job costing . d. A professional services firm would use job costing . e. A landscape garden contractor would use job costing . (10 min.) S 19-2 1 a. Materials inventory 3 b. Finished goods inventory 4 c. Cost of goods sold 2 d. Work in process inventory Accounting 7/e Solutions Manual 148
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(5-10 min.) S 19-3 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Materials Inventory 71,100 Accounts Payable 71,100 To record purchases of materials. Work in Process Inventory 63,000 Manufacturing Overhead 300 Materials Inventory 63,300 To record use of materials. Materials Inventory Bal. 35,000 63,300 Used Purchased 71,000 Bal. 42,700 Chapter 19 Job Costing 149
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(10 min.) S 19-4 Materials Inventory Work in Process Inventory Bal. 15 Bal. 30 Purchases 230 Used 220 Direct materials 200 Bal. 25 Direct labor 300 Cost of goods Manufacturing manufactured 630 overhead 150 Bal. 50 Materials requisitioned (used) $220 Direct materials used (200 ) Indirect materials used $ 20 (5 min.) S 19-5 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Manufacturing Wages 76,500 Wages Payable (or Cash) 76,500 To record incurrence of manufacturing wages ($600 + $900 + $75,000). Work in Process Inventory 75,000 Manufacturing Overhead 1,500 Manufacturing Wages 76,500 To assign manufacturing wages. Accounting 7/e Solutions Manual 150
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(5 min.) S 19-6 Manufacturing Overhead Nails, glue, and stain 21,000 Depreciation on saws 5,000 Indirect manufacturing labor 40,000 Bal. 66,000 (The following explanation is not required.) Wood is a direct material. Depreciation on delivery truck is a distribution expense. Assembly-line workers’ wages are direct labor. (5 min.) S 19-7 Manufacturing overhead cost allocated (.70 × $400)……………………………………. .. $ 280 Total cost of Job 703: Direct materials………………………………. .. $ 500 Direct labor……………………………………. .. 400 Manufacturing overhead……………………. . 280 Total cost of Job 703……………………………. . $1,180 Chapter 19 Job Costing 151
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(5 min.) S 19-8 1. Direct materials used…………………… $ 30,000 Indirect materials used………………… 3,000 2. Direct labor………………………………. . 60,000 Indirect labor……………………………. . 12,000
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Chapter_19_Solutions_7e - Chapter 19 Job Costing Quick...

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