Chapter 16 Ex 17 1 a Cost driver b Cost of finished goods manufactured c Overhead application rate d None (this statement describes underapplied overhead) e Job order costing f Activity based costing[.]
Trang 1Chapter 16:
Ex 17.1 a Cost driver
b Cost of finished goods manufactured
c Overhead application rate
d None (this statement describes underapplied overhead)
e Job order costing
f Activity-based costing
Ex 17.2 a $3,150 ($900 + $2,250 = jobs no 103 and 104)
b $7,440 ($4,200 + $3,240 = jobs no 101 and 102)
c $13,690 ($4,200 + $3,240 + $6,250 = jobs no 101, 102, and 104)
d $9,700 ($6,000 + $3,700 = jobs no 105 and 106)
e $2,900 (job no 103)
Ex 17.3 a Work in Process Inventory
Materials Inventory
Direct Labor
Manufacturing Overhead
Trang 2Manufacturing costs incurred on job no 321.
b Finished Goods Inventory
Work in Process Inventory
To record completion of job no 321.
c Accounts Receivable
Sales
………
……….
40,00
0
To record credit sale of 4,000 units from job
no 321
@ $10 per unit.
Cost of Goods Sold
Finished Goods Inventory
To record cost of sales of 4,000 units from job
no 321 (4,000 @ $4 per unit).
Ex 17.4 a $194,000 [($45,000 × 120%) + (400 machine hours × $350 per machine
hour)]
b $24 [($45,000 + $121,000 + $194,000) ÷ 15,000 units]
c The purpose in using more than one application rate is to more precisely apply overhead costs to the units generating those costs In the manufacture of keyboards, it appears that some overhead costs are driven
by direct labor, but other types of overhead costs are driven primarily by machine-hours.
d Examples of overhead costs:
Driven by direct labor (two required):
Indirect labor Many types of factory supplies
Trang 3Factory safety costs Driven by machine-hours (two required):
Machinery repairs Depreciation on machinery Utilities (electricity)
e In part a, $140,000 in overhead costs were assumed driven by machine
hours cost, whereas only $54,000 were assumed driven by direct labor cost Therefore, machine hours appears to be the primary cost driver of overhead costs.
f Gross profit on sale of 4,000 keyboards at $40 per unit:
Sale price (4,000 units × $40)
Cost of goods sold (4,000 units × $24 per part b)
Gross profit
Ex 17.5 a direct labor
b manufacturing overhead
c direct materials
d manufacturing overhead
e general, selling, and administrative
f direct materials
g manufacturing overhead
h selling, general, and administrative
i manufacturing overhead
j direct labor
k selling, general, and administrative
l selling, general, and administrative m
manufacturing overhead
Ex
Trang 4*Supporting calculations for cost of goods sold (COGS):
$220,000 direct labor ÷ $16 per hour rate = 13,750 DLH 13,750 DLH × $25 application rate = $343,750 overhead applied
$343,750 applied - $333,750 actual = $10,000 overapplied
$620,000 unadjusted COGS - $10,000 overapplied = $610,000
b Beginning Materials Inventory ……… $ 0
Ending Materials Inventory ……… 20,000 $
Beginning Work in Process Inventory ……… $ 0 Direct materials used ……… 280,00 0
Overhead applied (13,750 DLH × $25) ……… 343,75 0 Costs of jobs completed & transferred ……… (675,0 00) Ending Work in Process Inventory ……… $168,75 0
Beginning Finished Goods Inventory ……… $ 0 Costs transferred from work in process……… 675,00 0 Cost of Goods Sold (unadjusted) ……… (620,0 00) Ending Finished Goods Inventory ……… 55,000 $
Ex
17.7
a
.
(1) Materials Inventory ……… 800,000
To record materials purchased on account.
Trang 5Work in Process Inventory
Materials Inventory ……… 485,000
To record materials used on jobs.
(3)
Work in Process Inventory …….
To record labor used on jobs.
Problem 1.
20 Minutes, Easy
PROBLE
M 17.1A JENSEN FENCES
Direct labor charged to jobs in process, June 30 $ 1,500
Direct materials charged to jobs in process, June 30:
included Manufacturing overhead
1,875 3,375
Direct materials charged to jobs in process, June 30 $ 2,625
Trang 6b.
General Journal
(1
) Work in Process Inventory 45,000
To record costs charged to jobs during June
(2
) Finished Goods Inventory 44,000
To transfer cost of jobs completed in June to Finished
(3
To record cash sale of 80% of goods completed in June
To record cost of goods sold ($44,000 × 80%).
Trang 7Chapter 18:
Ex 18.1 a Process costing
b Conversion costs
c Equivalent units
d Production cost report
e Job order costing
Ex 18.2 a Equivalent Units Produced in January
Direct Materials Labor and Overhead Beg Work in
Started &
End Work in
Total Equivalent
b Equivalent Units Produced in February
Direct Materials Labor and Overhead Beg Work in
Started &
End Work in
Total Equivalent
1 Number of units started and completed:
Units transferred to finished goods ……… ……… …… 300 140
Trang 8Less: Units in beginning work in process ……… ……… (0) (40)
Units started and completed ………
2 Note: The units in beginning work in process in February were already complete with respect to direct materials, but required 40% of the necessary labor and overhead to finish them.
Ex 18.3 a Work in Process Inventory
Direct Materials
Direct Labor
Manufacturing Overhead
To record the costs assigned to production during June.
b Finish Goods Inventory
Work in Process Inventory
To record the transfer of 13,250 completed units to finished goods during June at a unit cost of $12 ($159,000/13,250 units
c Accounts Receivable
Sales
To record the sale of 10,000 units in June
at $25 per unit.
Cost of Goods Sold
Finished Goods Inventory
To record the cost of the 10,000 units sold
in June at a unit cost of $12.
Ex 18.4
Shamrock Industries Production Cost Report
Trang 9For the Month of June
•Ending WIP -0 -
Materials Conversion Costs
•Ending WIP -0 - -0 -
Part III Cost Per Equivalent
Part IV Total Cost Assignment Total Costs Direct
Materials Conversion Costs
Trang 10•Cost of beginning WIP $ -0-
Beginning WIP last period $ -0- $ -0- $
-0-Beginning WIP this period -0- -0-
•Add ending WIP -0- -0-
a 13,250 EU @ $6.7736 = $89,750
b 13,250 EU @ $5.2264 = $69,250
Ex 18.5
a Equivalent full units of production:
Beg WIP 4,900 (7,000 × 7) 1,920 (4,800 × 4)
Started &
End WIP 2,880 (4,800 × 6) 2,240 (6,400 × 35)
Total Equivalent
Total manufacturing costs
Trang 11Total manufacturing cost per equivalent unit
Thus, manufacturing costs per equivalent unit decreased between March and April.
Direct Materials costs
÷Equivalent units produced
Total direct materials cost per equivalent unit
Thus, direct materials cost per equivalent unit increased between March and April.
Ex 18.6
Total units in process during January 15,00
Units transferred to Finishing Department in January 11,00
Note: All of the units transferred were started and completed in January.
b
To start and complete 11,000 units in January 11,00
0 11,000
Trang 12Direct materials (4,000 units 100% complete) 4,00
Equivalent units of input resources in January 15,00
0 11,800
Cost of direct materials and conversion incurred in
Equivalent units of resources in January (see part b) ÷ 15,000 ÷ 11,800 Cost per equivalent unit of input resource in January $
40 $ 50
d
e 4,000 equivalent units of direct materials × $40 per unit $
800 equivalent units of conversion × $50 per unit 40,00
Total costs assigned to work in process on January 31 200,000 $
Ex 18.7
a
. The number of units started by the Finishing Department equals the number of units transferred in January from the Cutting Department, or 11,000 (see Exercise 18.6, part a).
b
Units started (transferred in) during January 11,000
Total units in process during January 11,000
Trang 13Ending work in process, January 31 (3,000)
Units transferred to Finished Goods Inventory in January 8,000
Note: All of the units transferred were started and completed in January.
To start and complete 8,000 units in January 8,00
0 8,000 8,000
To start ending inventory in process on January
Direct materials (3,000 units 30% complete) 900
Equivalent units of input resources in January 11,00
0 8,900 9,800
d
990,000 $ 142,400 $ 235,200 Equivalent units in January (see part c) ÷ 11,000 ÷ 8,900 ÷ 9,800
90 $ 16 $ 24
To record the transfer of 8,000 units to Finished
f 3,000 equivalent units of cut materials x $90 $
270,000
900 equivalent units of direct trim materials x
1,800 equivalent units of conversion x $24 43,20
0
Trang 14Total costs assigned to work in process on
Problem1
20 Minutes, Easy
PROBLEM
18.1A BRITE IDEAS
Units transferred out in June
Beginning inventory in process, June 1
(900)
Units started and completed in June
(900 units require 30% to complete) 270
To start and complete 4,100 units in June
4,100 4,100 4,100
To start ending inventory in process on June
Body materials (1,100 units 100%
Wiring materials (1,100 units 0% complete) 0
Conversion (1,100 units 40% complete) 440
Total equivalent units in June
5,200 4,100 4,810
Trang 15Units transferred out in July
Beginning inventory in process, July 1
(1,100)
Units started and completed in July