Supplementary questions_Chp

Required 1 prepare t accounts for manufacturing

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Required: 1. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant information to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000, FG, begin = Ø, and RM stores begin = Ø EXERCISE 3-10 Applying Overhead; Cost Flows in T-Accounts Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobs on the basis of machine-hours. At the beginning of the year, the company estimated that it would work 576,000 machine-hours and incur $4,320,000 in manufacturing overhead cost. Beginning balances for FG and RM stores = 0. The company had no work in process at the beginning of the year. The company spent the entire month of January working on one large order—job 382, which was an order for 8,000 machined parts. Cost data for January follow: a. Raw materials purchased on account, $315,000. b. Raw materials requisitioned for production, $270,000 (80% direct and 20% indirect). c. Labour cost incurred in the factory, $190,000, of which $80,000 was direct labour and $110,000 was indirect labour. d. Depreciation recorded on factory equipment, $63,000. e. Other manufacturing overhead costs incurred, $85,000 (credit Accounts Payable). f. Manufacturing overhead cost was applied to production on the basis of 40,000 machine-hours actually worked during January. g. The completed job was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labour, and applied overhead.) Required: 1. Prepare T-accounts for all accounts. EXERCISE 3-13 Cost Flows in T-Accounts Fantastic Props, Inc. designs and fabricated movie props such as mock-ups of star-fighters and cybernetic robots. Inventories: Raw materials ....................................................... $25,000 Work in process .................................................... $30,000 Finished goods (props awaiting shipment ............ $45,000 100,000
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  • Winter '12
  • Farrar
  • Managerial Accounting, Generally Accepted Accounting Principles, Department Milling Assembly

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