5. Manufacturing overhead incurred on account totaled $120,000.6. Other manufacturing overhead consisted of indirect materials $14,000, indirect labor$18,000, and depreciation on factory machinery $8,000.Instructions(a) Prove the agreement of Work in Process Inventory with job cost sheets pertaining tounfinished work. (Hint: Use a single T-account for Work in Process Inventory.) Cal-culate each of the following, then post each to the T-account: (1) beginning balance,(2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completedjobs.(b) Prepare the adjusting entry for manufacturing overhead, assuming the balance isallocated entirely to Cost of Goods Sold.(c) Determine the gross profit to be reported for 2014. P2-2A For the year ended December 31, 2014, the job cost sheets of Cinta Companycontained the following data.JobManufacturingOverheadDirectDirectTotalNumberExplanationMaterialsLaborCosts7640Balance 1/1$ 77,800$25,00030,00011,00043,00058,000$24,00036,00018,00048,00055,000$28,80043,20021,60057,60066,000Current year's costsBalance 1/1109,20050,600148,600179,0007641Current year's costsCurrent year's costs7642Other data:1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,000 of rawmaterials were purchased on account.2. Finished goods on January 1 consisted of Job No. 7638 for $87,000 and Job No. 7639for $92,000.3. Job No. 7640 and Job No. 7641 were completed during the year.4. Job Nos. 7638, 7639, and 7641 were sold on account for $530,000.

Gross profit is the difference between revenue and cost of goods sold divided by revenue. It is used…

Other manufacturing overhead consisted of indirect materials $14,000, indirect labor $18,000, and depreciation on factory machinery $8,000. nstructions a) Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. (Hint: Use a single T-account for Work in Process Inventory.) Cal- culate each of the following, then post each to the T-account: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs. b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. :) Determine the gross profit to be reported for 2014.

Other manufacturing overhead consisted of indirect materials $14,000, indirect labor $18,000, and depreciation on factory machinery $8,000. nstructions a) Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. (Hint: Use a single T-account for Work in Process Inventory.) Cal- culate each of the following, then post each to the T-account: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs. b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. :) Determine the gross profit to be reported for 2014.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter10: Accounting Systems For Manufacturing Operations

Section: Chapter Questions

Problem 10.10E: Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses...

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Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.
The following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100
P3-3A Job Cost Journal Entries Holiday Manufacturing had the following inventories at December 31, 2018, the end of its fiscal year: Materials inventory $ 19,000 Work-in-process inventory 20,000 Finished goods inventory 13,000 During January 2019, the following transactions occurred: 1. Purchased materials on account, $126,000. 2. Requisitioned direct materials of $110,000 and indirect materials of $20,000. 3. Inccurred wages payable, $61,000. 4. Assigned total wages payable, of which $11,000 was considered indirect labor. 5. Incurred other manufacturing overhead, $32,800. (Credit Accounts Payable.) 6. Applied manufacturing overhead on the basis of 120% of direct labor costs. 7. Determined completed production, $206,000. Use this information to…
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XYZ Incorporation provides the following financial data for the month of July 2020: Beginning Inventories 'Rs.' Direct Material 12,000 WIP - Finished Goods - 1. Purchased material on accounts for Rs. 200,000 2. Defective material returned to supplier worth Rs. 5,000 3. Material and labor issued to job during the month Direct material Direct Labor Job # 101 40,000 65,000 Job # 102 50,000 80,000 Job # 103 30,000 50,000 Job # 104 25,000 40,000 Indirect 5,000 15,000 4. FOH rate is 120% of direct labor cost 5. Actual FOH cost incurred on account Rs. 250,000 Required a) Prepare journal entries to record the…
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For the year ended December 31, 2022, the job cost sheets of Blossom Company contained the following data. JobNumber Explanation DirectMaterials DirectLabor ManufacturingOverhead TotalCosts 7640 Balance 1/1 $20,000 $19,200 $23,040 $62,240 Current year’s costs 24,000 28,800 34,560 87,360 7641 Balance 1/1 8,800 14,400 17,280 40,480 Current year’s costs 34,400 38,400 46,080 118,880 7642 Current year’s costs 46,400 44,000 52,800 143,200 Other data: 1. Raw materials inventory totaled $12,000 on January 1. During the year, $112,000 of raw materials were purchased on account. 2. Finished goods on January 1 consisted of Job No. 7638 for $69,600 and Job No. 7639 for $73,600. 3. Job No. 7640 and Job No. 7641 were completed during the year. 4. Job Nos. 7638, 7639, and 7641 were sold on account for $424,000. 5. Manufacturing overhead incurred on account totaled…