2010s2w12HomeQ - Suggested solutions to homework question...

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Unformatted text preview: Suggested solutions to homework question – Week 12 Problem 17.12 1. 2. a. b. c. d. e. f. g. h. i. j. k. l. m. $420,000/12,000 direct labour hours = $35 per direct labour hour Journal entries: Raw Materials 150,000 Accounts Payable 150,000 Supplies 20,000 Accounts Payable 20,000 Work in Process 130,000 Overhead Control 20,000 Administrative Expense 40,000 Selling Expense 10,000 Wages Payable 200,000 Work in Process 455,000 Overhead Control 455,000 * * $35 x 13,000 Overhead Control 210,000 Administrative Expense 60,000 Selling Expense 30,000 Accumulated Depreciation 300,000 Overhead Control 13,500 Administrative Expense 750 Selling Expense 750 Accounts Payable 15,000 Overhead Control 155,000 Miscellaneous Payables 155,000 Work in Process 165,000 Raw Materials 165,000 Overhead Control 50,000 Supplies 50,000 Finished Goods 769,950 Work in Process 769,950 a Selling Expense 8,000 Administrative Expense 12,000 Accounts Payable 20,000 Cost of Goods Sold 784,250 Finished Goods 784,250 b Accounts Receivable 1,070,000 Sales Revenue 1,070,000 Overhead Control 6,500 c Cost of Goods Sold 6,500 a Information i indicates the ending balance of Work in Process (WIP). It also indirectly indicates how much WIP has been transferred to Finished Goods (FG). For detail, see below T‐account of WIP (ending bal.) and FG (referenced with ‘i’). b Information k indicates the ending balance of FG. It also indirectly indicates how much FG has been sold. For detail, see below T‐account of FG (referenced with ‘k’ and ending balance) and COGS (referenced with ‘k’). c See the T‐account for overhead control. 3. Raw Materials Beg. Bal. 30,000 a. 150,000 h. 165,000 End. Bal. 15,000 Overhead Control c. 20,000 e. 210,000 f. 13,500 g. 155,000 h. 50,000 COGS 6,500* d. 455,000 180,000 180,000 455,000 455,000 * Entry (Q2‐m) closes out the over‐ applied overhead variance. Work in Process Finished Goods Beg. Bal. 25,000 i. 769,950 Beg. Bal. 24,000 k. c. d. h. 130,000 455,000 165,000 End. Bal.5,050** i. 769,950 End. Bal. 9,700 775,000 775,000 793,950 793,950 **From info i of the question: Direct materials Direct labour Overhead ($35 90) Ending work in process $1,000 900 3,150 $5,050 Cost of Goods Sold 784,250 m. 6,500 End. Bal 777,750 784,250 784,250 k. 784,250 4. Neptune Pty. Ltd. Profit and Loss Statement For the Year Ended 20XX Sales Cost of goods sold: Beginning finished goods Cost of goods manufactured Goods available for sale Ending finished goods Normal cost of goods sold Less: Overapplied overhead Adjusted cost of goods sold Gross profit Selling and administrative expenses: Selling Administrative Net income $ 24,000 769,950 $793,950 9,700 $784,250 6,500 $1,070,000 a $ 48,750 b 112,750 c 777,750 $292,250 161,500 $130,750 a The cost of goods manufactured is equal to the amount transferred to finished goods. The same result can be obtained by preparing a cost of goods manufactured statement. b Selling expenses: $10,000 (c) 30,000 (e) 750 (f) 8,000 (j) $48,750 c Admin. expenses $40,000 (c) 60,000 (e) 750 (f) 12,000 (j) $112,750 ...
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This note was uploaded on 09/22/2011 for the course ACCT 1511 taught by Professor Kim during the One '10 term at University of New South Wales.

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