week 2 individual - SolutionsGuide:Please reword the...

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Solutions Guide:    Please reword the answers to essay type parts so as to guarantee that your answer is an original. Do not submit as is E2-6 Instructions (a) Answer the following questions. (1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? (2) What is the predetermined manufacturing overhead rate? (3) What are the total cost and the unit cost of the completed job? (b) Prepare the entry to record the completion of the job. (a) (1) The source documents are: Direct materials—Materials requisition slips. Direct labor—Time tickets. Manufacturing overhead—Predetermined overhead rate. (2) The predetermined overhead rate is 120% of direct labor cost. For example, on July 15, the computation is $528 ÷ $440 = 120%. The same result is obtained on July 22 and 31.
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(3) The total cost is: Direct materials. ....................................................................................... $4,825 Direct labor. .............................................................................................. 1,360 Manufacturing overhead. ........................................................................ 1,632 $7,820 The unit cost is $3.91 ($7,820 ÷ 2,000). (b) July 31Finished Goods Inventory. ............................................................ 7,820 Work in Process Inventory. ...................................... 7,820 E2-9 At May 31, 2005, the accounts of Yellow Knife Manufacturing Company show the following. 1. May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200. 2. May 31 inventories—finished goods $11,500, work in process $17,900, and raw materials $7,100. 3. Debit postings to work in process were: direct materials $62,400, direct labor $32,000, and manufacturing overhead applied $48,000. 4. Sales totaled $200,000.
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This note was uploaded on 07/18/2011 for the course ACC 349 taught by Professor Christie during the Spring '08 term at University of Phoenix.

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week 2 individual - SolutionsGuide:Please reword the...

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