Cost of goods sold beginning finished goods inventory

This preview shows page 29 - 34 out of 49 pages.

Cost of goods soldBeginning finished goods inventory60,000Plus: Cost of goods manufactured 375,000Less Ending finished goods inventory33,000Unadjusted Cost of goods sold402,000Less: Overapplied manufacturing overhead44,850Adjusted Cost of Goods Sold$357,150Gross profit142,850 Selling and administrative expenses59,000 Net Income from Operations$83,850 2-29
Chapter 02 - Job Order CostingPA2-2a.Raw Materials Inventory.......................................................136,000Accounts Payable.......................................................................136,000b.Manufacturing Overhead......................................................28,000Work In Process Inventory...................................................94,000Raw Materials Inventory..............................................................122,000c.Work In Process Inventory....................................................131,000Manufacturing Overhead......................................................24,000Salaries/Wages Payable.............................................................155,000d.Selling and Administrative Expenses (44,000 + 15,000)......59,000Manufacturing Overhead (26,000 + 30,000 + 24,000).........80,000Miscellaneous Accounts..............................................................(Payables, Cash, Prepaid Assets, Accumulated Dep.)139,000e.Work in Process Inventory....................................................176,850Manufacturing Overhead.............................................................176,850f.Finished Goods Inventory.....................................................375,000Work in Process Inventory..........................................................375,000g.Cost of Goods Sold...............................................................402,000Finished Goods Inventory...........................................................402,000h.Accounts Receivable............................................................500,000Sales Revenue............................................................................500,0002-30
Chapter 02 - Job Order CostingPA2–3Req. 1Predetermined overhead rate = $420,000 / 60,000 = $7.00 per machine hourReq. 2Total Applied Manufacturing Overhead = 7,000 hours X $7.00 = $49,000Req. 3Ending Work in Process Inventory (Job 103) = $9,600 + $9,600 + (2,000 machine hoursX $7.00) = $33,200Req. 4Cost of Job 101 = $19,200 + $28,800 + (1,000 machine hours X $7.00) = $55,000Since this was the only job sold, the gross profit before the adjustment for over or underapplied manufacturing overhead is $60,000 - $55,000 = $5,000.Req. 5 Manufacturing OverheadActual 45,00049,000 Applied4,000 Balance (Overapplied)PA2-4Req. 1Cost of Job 102 = $14,400 + $11,200 + (4,000 machine hours X $7.00) = $53,600Finished Goods Inventory………………………………………53,600Work in Process Inventory…………………………………………..53,600Req. 2Cost of Job 101 = $19,200 + $28,800 + (1,000 machine hours X $7.00) = $55,000Cost of Goods Sold……………………………………………...55,000Finished Goods Inventory…………………………………………...55,000Cash or Accounts Receivable………………………………….60,000Sales Revenue………………………………………………………..60,0002-31
Chapter 02 - Job Order CostingReq. 3Manufacturing Overhead..………………………………….4,000Cost of Goods Sold …………………………………………4,000PA2–5Req. 1Raw Materials InventoryWork in Process InventoryFinished Goods Inventory1/1 20,000b. 40,0001/1 15,000h. 97,0001/1 32,000i. 70,000a. 26,000b. 32,000h. 97,000Bal. 6,000 c. 18,000Bal. 59,000 g. 54,000Bal. 22,000Selling and AdministrativeExpensesCost of Goods SoldManufacturing Overheadi. 70,000b. 8,000g. 54,000c. 46,500Bal. 70,000c. 5,200d. 2,400d. 8,500e. 2,400e. 1,600Bal. 51,300f. 7,800 Bal. 22,900 OverappliedOther AccountsSales Revenue(Cash, Payables, etc.)i. 91,000i. 91,000a. 26,000Bal. 91,000c. 69,700d. 10,900e. 4,000f. 7,800Bal. 27,400Req. 2Unadjusted gross profit = $91,000 - $70,000 = $21,000Req. 3Manufacturing overhead is $22,900 overapplied.2-32
Chapter 02 - Job Order CostingReq. 4Adjusted gross profit = $91,000 – ($70,000 - $22,900) = $43,900PA2–6ItemAmountDirect Materials Used In Production$93,850Direct Labor 100,000Manufacturing Overhead Applied125,000Total Current Manufacturing Costs$318,850Plus: Beginning Work in Process Inventory12,000Less: Ending Work in Process Inventory9,600Cost of Goods Manufactured$321,250Plus: Beginning Finished Goods Inventory25,000Less: Ending Finished Goods Inventory31,250Unadjusted Cost of Goods Sold$315,000Overhead Adjustment10,000Adjusted Cost of Goods Sold$325,000PA2–7Req. 1 a. Predetermined overhead rate = $594,000 / 16,500 = $36.00 per direct labor hourb. Applied manufacturing overhead = 18,000 actual direct labor hours x $36 = $648,000c. $655,000 Actual - $648,000 Applied = $7,000 UnderappliedReq. 2a.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture