ch16solution - Chapter 16 Job and Process Costing Job...

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Unformatted text preview: Chapter 16 Job and Process Costing Job Costing Short Exercises (5 min.) S 16-1 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 order costing . d. A professional services firm would use job order costing . e. A landscape garden contractor would use job order costing . (10 min.) S 16-2 1 a. Materials inventory 3 b. Finished goods inventory 4 c. Cost of goods sold 2 d. Work in process inventory Chapter 16 Job and Process Costing 255 (5-10 min.) S 16-3 Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Materials Inventory 76,400 Accounts Payable 76,400 To record purchases of materials. Work in Process Inventory 63,000 Manufacturing Overhead 450 Materials Inventory 63,450 To record use of materials. Req. 2 and 3 Materials Inventory Bal. 35,000 63,450 Used Purchased 76,400 Bal. 47,950 Financial and Managerial Accounting 2/e Solutions Manual 256 (10 min.) S 16-4 Materials Inventory Work in Process Inventory Bal. 30 Bal. 40 Purchases 210 Used 170 Direct materials 150 Bal. 70 Direct labor 320 Cost of goods Manufacturing manufactured 630 overhead 140 Bal. 20 Materials requisitioned (used) $170 Direct materials used (150 ) Indirect materials used $ 20 (5 min.) S 16-5 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Manufacturing Wages 78,490 Wages Payable (or Cash) 78,490 To record incurrence of manufacturing wages ($550 + $940 + $77,000). Work in Process Inventory 77,000 Manufacturing Overhead 1,490 Manufacturing Wages 78,490 To assign manufacturing wages. Chapter 16 Job and Process Costing 257 (5 min.) S 16-6 1. Direct materials used…………………… $ 29,500 ($32,000 - $2,500) Indirect materials used………………… 2,500 2. Direct labor……………………………….. 60,000 ($71,000 - $11,000) Indirect labor…………………………….. 11,000 (5 min.) S 16-7 Manufacturing Overhead Indirect manufacturing labor Nails, glue, and stain 41,000 21,000 Depreciation on saws 4,500 Bal. 66,500 (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. Financial and Managerial Accounting 2/e Solutions Manual 258 (5 min.) S 16-8 Manufacturing overhead cost allocated (.60 × $350)……………………………………... $ 210 Total cost of Job 303: Direct materials………………………………... $ 470 Direct labor……………………………………... 350 Manufacturing overhead…………………….. 210 Total cost of Job 703…………………………….. $1,030 (10 min.) S 16-9 1. Actual manufacturing over h ead ($2,500 + $11,000 + $37,000) $50,500 2. Allocated manufacturing overhead…... $52,500 3. Manufacturing overhead is ($50,500 actual $52,500 allocated) = $ 2,000 − Overallocated Chapter 16 Job and Process Costing 259 (10 min.) S 16-10 Req. 1Req....
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ch16solution - Chapter 16 Job and Process Costing Job...

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