AccountingJuly 5Received material costing $6,000 from a supplier. The material was purchased on account.9Requisitioned $18,000 of material for use in the factory, consisting of $15,000 of direct material and $3,000 of indirect material.11Recorded the factory payroll: $40,500 of direct labor and $4,500 of indirect labor.17Incurred various overhead costs totaling $42,000. (Credit Accounts Payable.)20Applied $60,000 of manufacturing overhead to the products being manufactured.23Completed product costing $48,000 and moved it to the warehouse.Sold goods with a product cost of $9,000 on account for $15,000.26a. and b. Record the transactions listed above in general journal form, post relevant portions to the four T-accounts set-up below, and balance the four accounts.General JournalDateDescriptionDebitCreditJuly 5 Materials inventory0 xAccounts payableJuly 9 Work in process inventory0 xManufacturing overheadMaterials inventoryJuly 11 Work in process inventoryManufacturing overhead0 xWages payableJuly 17 Manufacturing overhead0 x0 xAccounts payable0 xJuly 20 Work in process inventoryManufacturing overhead0 xJuly 23 Finished goods inventory0 xWork in process inventory + v0 xJuly 26 Cost of goods sold0 xFinished goods inventory •To record cost of goods sold.July 26 Accounts receivable0 xSalesTo record sale of product.For T-accounts, enter transactions in order of occurrence using the first available answer box in the appropriate debit or credit column.Materials InventoryFinished Goods InventoryBal.21,0000 xBal.30,0000 xBal.0 xBal.Work in Process InventoryCost of Goods Sold75,00090,000Bal.Bal.0 x0 x0 xBal.0 xBal.0 x

Name: AccountingJuly 5Received material costing $6,000 from a supplier. The
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Description: AccountingJuly 5Received material costing $6,000 from a supplier. The material was purchased on account.9Requisitioned $18,000 of material for use in the factory, consisting of $15,000 of direct material and $3,000 of indirect material.11Recorded th

The direct costs incurred and overhead costs are applied to the production by debiting costs to work…

Business

Accounting

Received material costing $6,000 from a supplier. The material was purchased on account. Requisitioned $18,000 of material for use in the factory, consisting of $15,000 of direct material and $3,000 of indirect material. July 5 11 Recorded the factory payroll: $40,500 of direct labor and $4,500 of indirect labor. 17 Incurred various overhead costs totaling $42,000. (Credit Accounts Payable.) 20 Applied $60,000 of manufacturing overhead to the products being manufactured. 23 Completed product costing $48,000 and moved it to the warehouse. 26 Sold goods with a product cost of $9,000 on account for $15,000.

Received material costing $6,000 from a supplier. The material was purchased on account. Requisitioned $18,000 of material for use in the factory, consisting of $15,000 of direct material and $3,000 of indirect material. July 5 11 Recorded the factory payroll: $40,500 of direct labor and $4,500 of indirect labor. 17 Incurred various overhead costs totaling $42,000. (Credit Accounts Payable.) 20 Applied $60,000 of manufacturing overhead to the products being manufactured. 23 Completed product costing $48,000 and moved it to the warehouse. 26 Sold goods with a product cost of $9,000 on account for $15,000.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...

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A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78400 and conversion costs of $47000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?
An examination of Buckhorn Fabricators records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the weighted average method, was 10,000 gal @ .52 per gal. b. Production returned to the storeroom materials that cost 775. c. Materials valued at 770 were charged to Factory Overhead (Repairs and Maintenance), but should have been charged to Work in Process. d. Defective material, purchased on account, was returned to the vendor. The material returned cost 234. e. Goods sold to a customer, on account, for 5,000 (cost 2,500) were returned because of a misunderstanding of the quantity ordered. The customer stated that the goods returned were in excess of the quantity needed. f. Materials requisitioned totaled 22,300, of which 2,100 represented supplies used. g. Materials purchased on account totaled 25,500. Freight on the materials purchased was 185. h. Direct materials returned to the storeroom amounted to 950. i. Scrap materials sent to the storeroom were valued at an estimated selling price of 685 and treated as a reduction in the cost of all jobs worked on during the period. j. Spoiled work sent to the storeroom valued at a sales price of 60 had production costs of 200 already charged to it. The cost of the spoilage is to be charged to the specific job worked on during the period. k. The scrap materials in (i) were sold for 685 cash. Required: Record the entries for each transaction.
During the month, Job AB2 used specialized machinery for 450 hours and incurred $500 in utilities on account, $300 in factory depreciation expense, and $100 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of direct labor. The cost to make job 0325 is $70 in aluminum and two hours of labor at $20 per hour. During the month. York incurs $50 in indirect material cost. $150 in administrative labor, $300 in utilities, and $250 in depreciation expense. What is the predetermined overhead rate if direct labor hours are considered the cost driver? What is the cost of Job 0325? What is the overhead incurred during the month?
Glasson Manufacturing Co. produces only one product. You have obtained the following information from the corporations books and records for the current year ended December 31, 2016: a. Total manufacturing cost during the year was 1,000,000, including direct materials, direct labor, and factory overhead. b. Cost of goods manufactured during the year was 970,000. c. Factory Overhead charged to Work in Process was 75% of direct labor cost and 27% of the total manufacturing cost. d. The beginning Work in Process inventory, on January 1, was 40% of the ending Work in Process inventory, on December 31. e. Material purchases were 400,000 and the ending balance in Materials inventory was 60,000. No indirect materials were used in production. Required: Prepare a statement of cost of goods manufactured for the year ended December 31 for Glasson Manufacturing. (Hint: Set up a statement of cost of goods manufactured, putting the given information in the appropriate spaces and solving for the unknown information.)
During the month, Job Arch2 used specialized machinery for 350 hours and incurred $700 in utilities on account. $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: A. Record the expenses incurred. B. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
Kennedy Appliance Inc.s Machining Department incurred 450,000 of factory overhead cost in producing hoses and valves. The two products consumed a total of 9,000 direct machine hours. Of that amount, hoses consumed 4,250 direct machine hours. Determine the total amount of factory overhead that should be allocated to hoses using machine hours as the allocation base.
During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
Issuance of materials On May 7, Bergan Company purchased on account 10,000 units of raw materials at 8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at 8 per unit and 1,480 units for Job 305 at 5 per unit. Journalize the entry on May 7 to record the purchase and on May 31 to record the requisition from the materials storeroom.
5. Ehrlich Corporation incurred the following transactions. 1. Purchased raw materials on account $48,000. 2. Raw Materials of $43,900 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,000 was classified as indirect materials. 3. Factory labor costs incurred were $87,000. Time tickets indicated that $82,000 was direct labor and the rest was indirect labor. Direct laborers were paid at a rate of $20 per hour. 4. Rent incurred was $79,500. 70% was for the factory and 30% was for the corporate offices. 5. Factory depreciation was $13,000. 6. Administrative salaries accrued were $25,000. 7. Advertising costs of $10,000 were incurred on account. 8. Manufacturing overhead was applied at the rate of $16 per direct labor hour. 9. Goods costing $90,000 were completed and transferred to finished goods. 10. Finished goods costing $80,000 to manufacture were sold at a profit of $40,000. Instructions: Journalize the transactions.
Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $ 46,300. 2. Raw Materials of $ 36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $ 6,800 was classified as indirect materials. 3. Factory labor costs incurred were $ 59,900, of which $ 51,000 pertained to factory wages payable and $ 8,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $ 54,000 was direct labor and $ 5,900 was indirect labor. 5. Manufacturing overhead costs incurred on account were $ 80,500. 6. Depreciation on the company’s office building was $ 8,100. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $ 88,000 were completed and transferred to finished goods. 9. Finished goods costing $ 75,000 to manufacture were sold on account for $ 103,000. Journalize the transactions. (Credit account…
Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $59,900. 4. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor. 5. Manufacturing overhead costs incurred on account were $80,500. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $88,000 were completed and transferred to finished goods. 8. Finished goods costing $75,000 to manufacture were sold.