Direct materials control bal 112008 1 purchases 24000

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Direct Materials Control Bal. 1/1/2008 (1) Purchases 24,000 139,000 (2) Materials used 137,000 Bal. 12/31/2008 26,000 Work-in-Process Control Bal. 1/1/2008 (2) Direct materials used (3) Direct manuf. labor (5) Manuf. overhead allocated 21,000 137,000 95,000 475,000 (6) Cost of goods manufactured 692,000 Bal. 12/31/2008 99,000
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4-17 Finished Goods Control Bal. 1/1/2008 (6) Cost of goods manuf. 84,000 692,000 (7) Cost of goods sold 737,000 Bal. 12/31/2008 39,000 Cost of Goods Sold (7) Goods sold 737,000 (8) Adjust for overallocation 178,000 Manufacturing Overhead Control (3)Indirect labor (4) Supplies (4) Miscellaneous (4 Depreciation (4) Rent 69,500 35,000 24,500 45,000 85,000 (8) To close 259,000 Bal. 0 Manufacturing Overhead Allocated (8) To close 475,000 (5) Manuf. overhead allocated 475,000 Bal. 0
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4-18 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 } } } }
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4-19 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.
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4-20 4-27 (15 min.) Job costing, unit cost, ending work in progress. 1. Direct manufacturing labor rate per hour $20 Manufacturing overhead cost allocated per manufacturing labor-hour $15 Job J1 Job J2 Direct manufacturing labor costs $300,000 $275,000 Direct manufacturing labor hours ($300,000 ÷ $20; $275,000 ÷ $20) 15,000 13,750 Manufacturing overhead cost allocated (15,000 × $15; 13,750 × $15) $225,000 $206,250 Job Costs March 2009 Job J1 Job J2 Direct materials $ 100,000 $ 75,000 Direct manufacturing labor 300,000 275,000 Manufacturing overhead allocated 225,000 206,250 Total costs $625,000 $556,250 2.
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