chapter 19 and 20 accounting problems

chapter 19 and 20 accounting problems - E19-4 Caroline...

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Unformatted text preview: E19-4 Caroline Company reports the following costs and expenses in May. Factory utilities $ 11,500 Depreciation on factory equipment 12,650 Depreciation on delivery trucl-cs 3,000 Indirectfactory labor 43,900 Indirect materials 80,800 Direct materials used 13?,600 Factory manager's salary 8,000 Instructions Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used $69,100 45,4oo 2,5oo 1,3oo 2,ooo 13,ooo 2,640 From the information, determine the total amount of: [a] Manufacturing overhead. [b] Product costs. (1:) Period costs. (a) Manufacturing overhead $166,350 Pro-ductcoets $3?3,050 [bl IE Period Gusts $?2,14o E19-B Coldplay Corporation incurred the following costs while manufacturing its product. Materials used in product $100,000 Depreciation on plant 60,000 Property taxes on store ?,500 Labor costs of assembly-line worl-cers 110,000 Factory supplies used 23,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerl-cs $45,000 14,000 21,000 35,000 50,000 ILi'l'orlc-in-process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000 at January 1 and $55,600 at December 31. Instructions [a] Compute cost of goods manufactured. [b] Compute cost of goods sold. Coetof goo-d5 manufactured $303,500 Costuf goo-d3 sold $30?,900 E19- 10' v’ Correct. Manufacturing cost data for Crigui Company are presented below. Instructions Indicate the missing amount for each letter (A) through H]. Case A Direct materials used A $ 02150 Direct labor 5?,000 Manufacturing overhead 46,500 Total manufacturing costs 185,650 Worl-c in process 1f1f08 B 35850 Total cost of worl-c in process 221,500 II.I"l'orl-c in process 12.4”313'08 C 36225 Cost of goods manufactured 185,2?5 Case B $53,4oo es,ooo 31,5oo o zzsooo 16,500 E 2425oo 11,ooo F231500 Case [3 $13o,ooo c 213'oo 1o2,ooo 253,?oo H 83300 33?,ooo ?o,ooo I26?000 E19-12 Ail-cman ICorporation has the Following cost records for June 2010. Indirect factory labor $4,500 Factory utilities $400 Direct materials used 20,000 Depreciation, factory equipment 1,400 Work in process, 521203 3,000 Direct labor 30,000 II.I".'orl-<: in process, 5230203 3,300 Maintenance, factory equipment 1,300 Finished goods, 521203 5,000 Indirect materials 2,200 Finished goods, 5230203 2,500 Factory manager's salary 3,000 E19—12 Prepare a cost of goods manufactured schedule for June 201.0. (1'.stL amounts from fargesl‘ to smallest eg 10', 5, 3, 2.) AIKHAN CORPORATION Cost of Goods Manufactured Schedule For the Month Ended June 30-, 20-10 Work in process, June 1 $ 3000 Direc‘ labor $30,000 Direc‘ materials used 20,000 Manu acturing overhead Indirect labor 3; 4500 Factory manager's salary 3,000 Indirect materials 2,200 Maintenance, factory equipment 1,800 Depreciation, factory equipment 1,400 Factory utilities 400 Total manufacturing overhead 13300 Total manufacturing costs 53,300 Total cost of work in process 55300 Less: Work in process, June 30 3800 Cost of goods manufactured $52500 Prepare an income statement through gross profit for June 2010 assuming net sales are $32,100. AIKHAN CORPORATION Income Statement [Partial] For the Month Ended June 30, 2010 Net sales $32,100 Cost of goods sold Finished goods inyentory, June 1 $5,000 Cost of goods manufactured 52,500 Cost of goods available for sale 52,500 Finished goods inyentory, June 30 2,500 Cost of goods sold 50,000 Gross profit 22 100 Pig-4A The following data were taken from the records of Stellar Manufacturing Company for the fiscal year ended June 30, 2010. Raw Materials Inventory Tr‘,"1,"09 $48,000 Factory Machinery Depreciation $ 16,000 Raw Materials Inventory 62’301'10 39,600 Factory Utilities 2?,600 Finished Goods Inventory 7‘1'11'09 96,000 foice Utilities Expense 8,650 Finished Goods Inventory 6f30f10 95,900 Sales 554,000 WDFlIC in Process Inventory ?,f1,"09 19,800 Sales Discounts 4,200 WDFlIC in Process Inventory 6f30f10 18,600 Plant Manager's Salary 29,000 Direct Labor 149,250 Factory Property Taxes 9,600 Indirect Labor 24,460 Factory Repairs 1,400 Accounts Receivable 2?,000 Raw Materials Purchases 96,400 Factory Insurance 4,600 Cash 32,000 Complete the cost of goods manufactured schedule. (Assume all raw materials used smallest eg 10, 5, 3, 2.) were direct materials.) first amounts from l'argesl‘ ts STELLAR MANUFACTURING COMPANY Cost of Goods Manufactured Schedule For the Year Ended June 30, 2010 Work in process, Tr’lf09 $19,800 Direct materials Raw materials inv., 711,!09 $48,000 Raw materials purchases 96,400 Total raw materials available for use 144,400 Less: Raw materials iny., 6f30fl0 39600 Direct materials used $104,800 Direct labor 149250 Manufacturing overhead Plant manager's salary 29,000 Fac‘ory utilities 2T,600 Indirect labor 24,460 Factory machinery depreciation 16000 Fac‘ory property taxes 9,600 Factory insurance 4,600 Factory repairs 1,400 Total manufacturing overhead 'otal manufacturing costs "otal cost of work in process Less: Work in process, 6130f10 lCost of goods manufactured 112,660 355 710 335,510 18600 $36?,910 Complete an income statement through gross profit. STELLAR MANUFACTURING '(IIIII"IPAN\'r (Partial) Income Statement For the Year Ended June 30, 2010 Sales revenues Sales $ 554000 Less: Sales discounts 4200 Net sales $549800 Cost of goods sold Finished goods inv., Tllr'09 96000 Cost of goods manufactured 36?,910 Cost of goods available for sale 463,910 Less: Finished goods inv., 6330110 95900 Cost of goods sold Gross profit 368,010 181,?90 Complete the current assets section of the balance sheet at June 30, 201.0. {tist amounts from largest to smallest eg 10, 5, 3, 2.) STELLAR MANUFACTURING 'l‘.IIIIl"II:"AN‘IIr [Partial] Balance Sheet June 30, 1010 Current assets Cash $ azooo Accounts receivable 2?000 Inventories Finished goods $95900 Raw materials 39,600 WIZIrl'C in process 18,600 154100 Total current assets E 21-31-00 E20- 1 The gross earnings of the factory workers for Brantley Company during the month of January are $60,000. The employer's payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by the employer on this payroll are $4,000. Of the total accumulated cost of factory labor, 85% is related to direct labor and 1.5% is attributable to indirect labor. « Co rre ct. Prepare the entry to record the factory labor costs for the month of January. (For multiple debitf‘cred'it entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account Dacri tion Debit Credit Factory labor ?2000 Factory wages payable 60000 Employer payroll taxes payable 8000 Employer fringe benefits payable 4000 « Correct. Prepare the entry to assign factory labor to production. (For multiple debit/credit entries, list amounts from largest to smallest eg 1 0, 5, 3, 2.) Account Dacri tion Debit Credit Work in process inventory 61.200 Manufacturing overhead 1.0800 Factory labor ?2000 E20—2 Eccounti DescriEtion Debit Credit May 31 {i} Work in process inventory 10,400 Manufacturing overhead 800 Raw materials inventory 11,200 May 31 (ii) Work in process inventory 12,500 Manufacturing overhead 1,200 Factory labor 13,200 May 31 {iii} Work in process inventory {$12,500 x 80%] 10,000 Manufacturing overhead 10,000 '— May 31 (iv) Finished goods inventory 2,920 Work in process inventory 2,920 {$2,000 + $2,500 + $1,900 + $1520]* * $1,903 x 30% E20-2 Post the entries to lLfll'orI-c in Process Inventory, and prove the agreement of the control account with the job cost sheets. (tist amounts in the same orcler as tlle journals above. If answer is zero, lolease enter 0. Do not leave any fields blank.) Work in Process Inventory May 1 Balance 3200 May 31 7,920 3]. 10,400 3]. 0 31 12,500 31 0 3]. 10000 3]. 0 May 31 Balance 28,180 May 31 Balance 0 Job Cost Sheets Job Beginning Work in Manufacturing No. Process Direct Material Direct Labor Overhead Total 430 $1,200 $3,500 $3,000 $2,400 $10,100 431 0 4,400 7,500 5,080 18,080 $1,200 $7,900 $10,300 $3,430 $23,130 EEO—4 Manufacturing cost data for Pena Company, which uses a job order cost system, are presented below. Instructions Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. Case A Case B Case (3 Direct materials used 31$ 63150 $83,000 $ 63,150 Direct labor 50,000 120,000 1': 31,000 Manufacturing overhead applied 42,500 11' 102,000 f 68,850 Total manufacturing costs 155,650 03 305,000 213,000 Work in process 111110 b 45850 15,500 18,000 Total cost of worl-c in process 201,500 f 320,500 j 231000 Work in process 123'313'10 c 9200 11,800 J: 9000 ICost of goods manufactured 192,300 9' 308,700 222,000 EEO—4 (a) + $50,000 + $42,500 = $155,550 (a) = $53,150 $155,550 + {0] = $201,500 (0] = $45,350 $201,500 - (0] = $132,300 {0] = $3,200 [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 3555, or ($42,500 + $50,000].] lid] lid] $33,000 + $120,000 + $102,000 = (e) (a) =$305,000 .35 3 $120,000 $102,000 $305,000 + $15,500 = (f) (f) = $320,500 $320,500 - $11,300 =10] (g) = $303,200 [Note: (h) and [i] are solved together.] (i) = .3501] $53,150 + (h) + .3501) = $213,000 1.3510] = $143,350 (0] = $31,000 (i) = $53,350 03=$2131000 + $13,000 0'] = $231,000 $231,000 - (k) = $222,000 III-cc] = $9,000 EEG—5 Compute the manufacturing overhead rate for the vear. {Round answer to 2 decimal places, eng. 10.50.) $2.44 $2.44 per maehine hour [$305,000 + 125,000] EEO-5 I|.I'|.|'hat is the amount of under- or overapplied overhead at December 31'? $4,300 Underapplied [$322,000] - [$2.44- >< 130,000 Maehine Hours] $322,000 - $31?,200 = $4,300 underapplied EEO-5 Assuming the under- or overapplied overhead for the vear is not allocated to inventor',r aeeounts, prepare the adjusting entryr to assign the amount to cost of goods sold. Wfifl Cost of goods sold 4,300 Manufacturing overhead 4,300 EEO-I" Elder Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were reguisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $53,900, of which $49,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $48,000 was direct labor and $5,900 was indirect labor. 5. Overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7’. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $?5,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) _ (count Descri tion Lb“: M 1. Raw materials inventory 46300 Accounts payable 46300 2. Work in process inventory 29200 Manufacturing overhead 6800 _ Raw materials inventory 36000 ,3._Factory abor 53900 _ Factory wages payable 49000 _ Employer payroll taxes payable 4900 4._ Work in process inventory 48000 _Manufac:uring overhead 5900 _ Factory labor 53900 5._Manufac:uring overhead 80,500 _ Accounts payable 80,500 6. Work in process inventory ?2,000 Manufacturing overhead ?2,000 7. Finished goods inventory 88,000 _ Work in process inventory 88,000 8._,Accounts receivable 103,000 _ Sales 103,000 _(To record sale of goods.) _Cost of goods sold F5,000 _ Finished goods inventory ?5,000 {To record oust of goods.) FED—1A Calculate the predetermined overhead rate for 2010, assuming Garcia Manufacturing estimates total manufacturing overhead costs of $1,050,000, direct labor costs of $?00,000, and direct labor hours of 20,000 for the year. 150% $1,050,000 + $?00,000 direct labor costs = 150% of direct labor costs P20-1A Prepare the journal entries to record the purchase of raw materials, the factoryr labor costs incurred, and the manufacturing overhead costs incurred during the month of January. [For multiple clelJltfcrecllt entries, list amounts from largest to smallest eg 10', 5, 3, 2.] Eccou ntE Desvcri Etion Debit Credit Raw materials inventory 90,000 Accounts payable 90,000 {To record purchase of raw materials.) Factory labor 55,000 Factory wages payable 49,000 Employer payroll taxes payable 15,000 (To record factory labor costs.) Manufacturing overhead ?1,000 Accounts payable 20,000 Accumulated depreciation 19,000 Raw materials inventory 1?,000 Factory labor 15,000 {To record overhead costs.) qurln prepare the jcurnal entries ta reccrd the assignment of direct n—iaterials, direct labor, and manufacturing overhead cgsts t0 prgductign. In assigning manufacturing gverhead costs, use the gverhead rate calculated in th ticn. Debitl credit 79,000I ntary Is to grad uctian _ ) 79,000 50,000 50,000 75,000 75,000 I(Ta agign manufacturing overhead ta pruducticorl—) (count Descri tion I Debitl Credit fiork in process inventory 39,000- Raw materials inventory {$10,000 + $39,000 + $30,000) ?9,000 {To assign direct materials to production.) lWork in process inventory l 50,000l Factory labor ($5,000 + $25,000 + $20,000] 50,000 (To assign labor to production.) fiork in process inventory T5,.000 Hanufacturing overhead {$50,000 x 150% of direct labor costs.) $5,000 lfTo assign manufacturing overhead to production.) I l FED-1A Dpen jolJ cost sheets for Jobs SD, 51., and 52. Enter the Januaryr 1 balances on the job cost sheet for JDlJ No. ED. Post all costs to the job cost sheets as necessary. Total the job cost sheets for anyr jolJIIs) completed during the month. Prepare the journal entryr (or entries) to record the completion of anyr jolJIIs) during the month. Direct Manufacturing materials Direct labor Dverhead $20,000 $12,000 1|] DUI] Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost * $5,000 x 15055 Direct Manufacturing materials Direct labor 39 DUI] Cost of completed job Direct materials Direct labor Manufacturing overhead Total cost ** $25,000 x 15055 Direct Manufacturing materials Direct labor 3|] [lfll] *** $20,000 x 15055 Eccou ntE DescriEtion Debit Credit Finished goods inventory 1?2,DDD Work in process inventory {$TEI,5EIEI + $101,500} 1?2,DDD FED—1A Prepare the journal entryr (or entries] to record the sale of anyr jobfis] during the month. Eccou ntE Descrifition Debit Credit Cost of goods sold 160,500 Finished goods inventory {$90,000 + $?0,500]I 160,500 {To record cost of jobs.) Eccounts receivable 200,000 Sales ($122,000 + $150,000] 200,000 (To record sale ofjobs.) FED—1A What is the balance in the Finished lGoods Inventory:r account at the end of the month? $101,500 What does this balance consist of? Job No. 51 Finished Goods Invento Beginning balance 90,000 160,500 Cost of jobs 49 and 50 sold Cost of completed jobs 50 and 51 1?? DUI] Ending balance 101,500 The balance in this account consists of the cost of completed Job No. 51 which has not vet been sold. FEB—1A What is the amount of over- or underapplied overhead?I $4,000 Dverapplied Manufacturin Overhead Agglied Tr‘E 000 4,000 The balance in the Manufacturing Overhead account is overapplied. ...
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chapter 19 and 20 accounting problems - E19-4 Caroline...

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