Costed sales invoice b cr finished goods records

This preview shows page 15 - 20 out of 43 pages.

Costed sales invoice b. cr. Finished goods records, issued column 11. a. Special authorization from the responsible accounting officer b. Subsidiary records are generally not used for these entries
4-16 4-26 (45 min.) Job costing, journal entries. Some instructors may wish to assign Problem 4-24. It demonstrates the relationships of journal entries, general ledger, subsidiary ledgers, and source documents. 1. An overview of the product-costing system is 2. Amounts in millions. (1) Materials Control Accounts Payable Control 150 150 (2) Work-in-Process Control Materials Control 145 145 (3) Manufacturing Department Overhead Control Materials Control 10 10 (4) Work-in-Process Control Wages Payable Control 90 90 (5) Manufacturing Department Overhead Control Wages Payable Control 30 30 (6) Manufacturing Department Overhead Control Accumulated Depreciation 19 19 (7) Manufacturing Department Overhead Control Various liabilities 9 9 (8) Work-in-Process Control Manufacturing Overhead Allocated 63 63 (9) Finished Goods Control Work-in-Process Control 294 294 (10a) Cost of Goods Sold Finished Goods Control 292 292 (10b) Accounts Receivable Control (or Cash ) Revenues 400 400 Manufacturing Overhead Machine-Hours Indirect Costs Direct Costs Direct Materials Direct Manuf. Labor INDIRECT COST POOL COST ALLOCATION BASE COST OBJECT PRODUCT DIRECT COSTS
4-17 The posting of entries to T-accounts is as follows: Materials Control Work-in-Process Control Bal. 12 (1) 150 (2) 145 (3) 10 Bal. 2 (2) 145 (4) 90 (8) 63 (9) 294 Bal. 6 Finished Goods Control Cost of Goods Sold Bal. 6 (9) 294 (10a) 292 (10a) 292 (11) 5 Manufacturing Department Overhead Control Manufacturing Overhead Allocated (3) 10 (5) 30 (6) 19 (7) 9 (11) 68 (11) 63 (8) 63 Accounts Payable Control Wages Payable Control (1) 150 (4) 90 (5) 30 Accumulated Depreciation Various Liabilities (6) 19 (7) 9 Accounts Receivable Control Revenues (10b) 400 (10b) 400 The ending balance of Work-in-Process Control is $6. 3. (11) Manufacturing Overhead Allocated 63 Cost of Goods Sold 5 Manufacturing Department Overhead Control 68 Entry posted to T-accounts in Requirement 2.
4-18 4-27 (15 min.) Job costing, unit cost, ending work in progress. 1. Direct manufacturing labor rate per hour $25 Manufacturing overhead cost allocated per manufacturing labor-hour $20 Job M1 Job M2 Direct manufacturing labor costs $275,000 $200,000 Direct manufacturing labor hours ($275,000 $25; $200,000 $25) 11,000 8,000 Manufacturing overhead cost allocated (11,000 $20; 8,000 $20) $220,000 $160,000 Job Costs May 2007 Job M1 Job M2 Direct materials $ 75,000 $ 50,000 Direct manufacturing labor 275,000 200,000 Manufacturing overhead allocated 220,000 160,000 Total costs $570,000 $410,000 2. Number of pipes produced for Job M1 1,500 Cost per pipe ($570,000 1,500) $380 3. Finished Goods Control 570,000 Work-in-Process Control 570,000 4. Raymond Company began May 2007 with no work-in-process inventory. During May, it started and finished M1. It also started M2, which is still in work-in-process inventory at the end of May . M2’s manufacturing costs up to this point, $410,000 , remain as a debit balance in the Work-in-Process Inventory account at the end of May 2007.
4-19 4-28 (20 30 min.) Job costing; actual, normal, and variation from normal costing.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture