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Work-in-Process Control (Materials used)118,800Bal. 12/31/201113,000Work-in-Process ControlBal. 1/1/2011(2)Materials Control (Direct materials used)(3)Wages Payable Control (Direct manuf. labor)(5)Manuf. Overhead Allocated6,300118,80083,000215,800(6)Finished Goods Control (Cost of goods manufactured)400,900Bal. 12/31/201123,000Finished Goods ControlBal. 1/1/2011(6)WIP Control(Cost of goods manuf.)68,000400,900(7)Cost of Goods Sold441,900Bal. 12/31/201127,000Cost of Goods Sold(7)Finished Goods Control (Goods sold)441,900(8)Manufacturing Overhead Allocated (Adjust for overallocation)12,900Manufacturing Overhead Control(3)Wages Payable Control(Indirect manuf. labor)(4)Salaries Payable Control (Maintenance)(4)Accounts Payable Control (Miscellaneous)(4)Accum. Deprn. Control (Depreciation)(4) Rent Payable Control (Rent)54,00029,0009,90032,00078,000(8)To close202,900Bal. 0Manufacturing Overhead Allocated(8)To close215,800(5)Work-in-Process Control (Manuf. overhead allocated)215,800Bal.04-22
4-26(45 min.)Job costing, journal entries.Donald Transport assembles prestige manufactured homes. Its job- costing system has twodirect-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool(manufacturing overhead allocated at a budgeted $31 per machine-hour in 2014). The followingdata (in millions) show operation costs for 2014:Materials Control, beginning balance, January 1, 2014$ 18Work-in-Process Control, beginning balance, January 1, 20149Finished Goods Control, beginning balance, January 1, 201410Materials and supplies purchased on credit154Direct materials used152Indirect materials (supplies) issued to various production departments19Direct manufacturing labor96Indirect manufacturing labor incurred by various production departments34Depreciation on plant and manufacturing equipment28Miscellaneous manufacturing overhead incurred (ordinarily would be detailed as13repairs, utilities, etc., with a corresponding credit to various liability accounts)Manufacturing overhead allocated, 3,000,000 actual machine-hours?Cost of goods manufactured298Revenues410Cost of goods sold294Required:1.Prepare an overview diagram of Donald Transport’s job-costing system.2.
Prepare journal entries. Number your entries. Explanations for each entry may be omitted.Post to T-accounts. What is the ending balance of Work-in-Process Control?3.
Show the journal entry for disposing of under- or overallocated manufacturing overheaddirectly as a year-end writeoff to Cost of Goods Sold. Post the entry to T-accounts.