{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 03s

Depreciation of factory equipment $2,900 3 property

Info iconThis preview shows pages 28–39. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Depreciation of factory equipment $2,900 3. Property taxes payable on factory $1,000 Manufacturing Overhead 5,600 Utilities Payable 1,700 Accumulated Depreciation 2,900 Property Taxes Payable 1,000 (4) 3-29 Mfg. Overhead Salaries and Wages Payable Work in Process (Job Cost Sheet) l Direct Materials l Direct Labor l Direct Labor l Indirect Materials Actual Applied l Indirect Labor l Indirect Labor Applying Manufacturing Overhead l Other Overhead l Overhead Applied l Overhead Applied to Work in Process If actual and applied manufacturing overhead are not equal, a year-end adjustment is required. 3-30 Applying Manufacturing Overhead Smith uses a predetermined overhead rate of $3.50 per machine-hour. During the month, 5,000 machine-hours were worked on jobs. Work in Process 17,500 Manufacturing Overhead 17,500 (5,000 machine hours × $3.50 = $17,500) (5) 3-31 Accounting for Nonmanufacturing Cost Nonmanufacturing costs are not assigned to individual jobs, rather they are expensed in the period incurred. Examples: 1. Salary expense of employees who work in a marketing, selling, or administrative capacity. 2. Advertising expenses are expensed in the period incurred. 3-32 Accounting for Nonmanufacturing Cost During the month, Smith incurred but has not paid sales salaries of $2,000, and advertising expense of $750. Salaries Expense 2,000 Advertising Expense 750 Salaries Payable 2,000 Accounts Payable 750 (6) 3-33 Finished Goods Work in Process (Job Cost Sheet ) l Direct Materials l Direct Labor l Overhead Applied l Cost of Goods Mfd. l Cost of Goods Mfd. Transferring Completed Units 3-34 Transferring Completed Units During the period, Smith completed jobs with a total cost of $27,000. Finished Goods 27,000 Work in Process 27,000 (9) 3-35 Finished Goods Cost of Goods Sold Work in Process (Job Cost Sheet) l Direct Materials l Direct Labor l Overhead Applied l Cost of Goods Mfd. l Cost of Goods Mfd. l Cost of Goods Sold l Cost of Goods Sold Transferring Units Sold 3-36 Transferring Units Sold Smith sold the $27,000 in Finished Goods Inventory to customers for $43,500 on account. Accounts Receivable 43,500 Sales 43,500 Cost of Goods Sold 27,000 Finished Goods 27,000 (10) 3-37 Schedule of Cost of Goods Manufactured: Key Concepts This schedule contains three types of costs, namely direct materials, direct labor, and manufacturing overhead. It calculates the cost of raw material and direct labor used in production and the amount of manufacturing overhead applied to production. It calculates the manufacturing costs associated with goods that were finished during the period. 3-38 Quick Check ü Beginning raw materials inventory was $32,000. During the month, $276,000 of raw material was purchased. A count at the end of the month revealed that $28,000 of raw material was still present. What is the cost of direct material used?...
View Full Document

{[ snackBarMessage ]}

Page28 / 47

Depreciation of factory equipment $2,900 3 Property taxes...

This preview shows document pages 28 - 39. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online