P15-1A - Solutions Guide This is meant as a solutions guide Please try reworking the questions and reword the answers to essay type parts so as to

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Solutions Guide: This is meant as a solutions guide. Please try reworking the questions and reword the answers to essay type parts so as to guarantee that your answer is an original. Do not submit as your own. Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2010, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and manufacturing overhead $16,000. As of January 1, Job No. 49 had been completed at a cost of $90,000 and was part of finished goods inventory. There was a $15,000 balance in the Raw Materials Inventory account. During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $122,000 and $158,000, respectively. The following additional events occurred during the month. Purchased additional raw materials of $90,000 on account. Incurred factory labor costs of $65,000. Of this amount $16,000 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $15,000; depreciation expense $19,000, and various other manufacturing overhead costs on account $20,000. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $10,000 $ 5,000 51 39,000 25,000 52 30,000 20,000 Calculate the predetermined overhead rate for 2010, assuming Garcia Manufacturing estimates total manufacturing overhead costs of $1,050,000, direct labor costs of $700,000, and direct labor hours of 20,000 for the year. %
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Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit Factory wages payableAccumulated depreciationFinished goods inventorySalesCashRaw materials inventoryDepreciation expenseAccounts payableWages expenseFactory laborManufacturing overheadWork in process inventoryEmployer payroll taxes payable Work in process inventoryDepreciation expenseFactory laborEmployer payroll taxes
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This note was uploaded on 07/13/2011 for the course ACC 202 taught by Professor Woollen during the Spring '08 term at Hawaii.

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P15-1A - Solutions Guide This is meant as a solutions guide Please try reworking the questions and reword the answers to essay type parts so as to

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