Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 2, Problem 7E
Exercise 15-7 Cost flows in a
The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order
| April 30 | May 31 | |
| Inventories………………. | ||
| Raw materials…………… | $43,000 | $ 52,000 |
| Work in process………………. | 10,200 | 21,300 |
| Finished goods…………….. | 63,000 | 35,600 |
| Aestivates and information for May | ||
| Raw materials purchases (paid with cash)…………… | 210,000 | |
| Factory payroll (paid with cash)…………….. | 345,000 | |
| Factory overhead | ||
| Indirect materials………….. | 15,000 | |
| Indirect labor………….. | 80,000 | |
| Other (received in cash)……….. | 120,000 | |
| Sales (received in cash)………… | 1,400,000 | |
| Predetermined overhead rate based on direct labor cost………….. | 70% |
Compute the following amounts for the month of May.
- Cost of direct materials used.
- Cost of direct labor used.
- Cost of goods manufactured.
- Cost of goods sold.* *Do not consider any underappllied or overapplied overbead.
- Gross profit.
- Overapplied or underapplied overhead. Check (3) $625,400
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Required information
Problem 19-3A Source documents, journal entries, and accounts in job order costing LO P1, P2, P3
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[The following information applies to the questions displayed below.] Widmer Watercraft’s predetermined overhead rate is 200% of direct labor. Information on the company’s production activities during May follows.
Purchased raw materials on credit, $220,000.
Materials requisitions record use of the following materials for the month.
Job 136
$
49,500
Job 137
33,500
Job 138
19,200
Job 139
22,800
Job 140
6,800
Total direct materials
131,800
Indirect materials
20,500
Total materials used
$
152,300
Paid $15,000 cash to a computer consultant to reprogram factory equipment.
Time tickets record use of the following labor for the month. These wages were paid in cash.
Job 136
$
12,200
Job 137
10,600
Job 138
38,100
Job 139
39,000
Job 140
3,800…
Exercise 5.19Journal Entries, T-AccountsObjective 4 - Describe the cost flows associated with job-order costing, andprepare the joumal entries.Kapoor Company uses job-order costing. During January, the following datawere reported:a. Materials purchased on account: direct materials, $98,500; indirectmaterials, S14,800.b. Materials issued: direct materials, S82,500; indirect materials, S8,800.c. Labor cost incurred: direct labor, $67,000; indirect labor, $18,750.d. Other manufacturing costs incurred ( all payables), S46,200.e, Overhead is applied on the basis of 110 percent of direct labor cost.f. Wark finished and transferred to Finished Goods Inventory cost$230,000.g. Finished goods costing S215,000 were sold on account for 140 percentof cost.h. Any over- or underapplied overhead is closed to Cost of Goods Sold.Required:1, Prepare journal entries to record these transactions.2. Prepare a T-account for Overhead Control. Post all relevant information to thisaccount. What is the ending…
Question 3
Teratoor Space provides interior design services in Bandar Teemor. It uses a job order costing system to
accept orders from the customers. The manufacturing overhead cost is absorbed based on direct labour
hour. The budgeted manufacturing overhead cost for the month of January is RM96,500. Management
expects a total of 19,300 direct labour hours will be used.
Prepare journal entries for the month of January:
Jan
Particular
13
19
22
26
30
Purchase 200 boxes of direct material
from Bharatt on credit for RM4,200.
55 boxes of direct material was requested
from the store for production. It was
bought for RM11.50 per box.
The decoration section has purchased
240 boxes indirect material which cost
RM26.10 per box from Otara by cash.
Direct labour cost paid for the month of
January amounted to RM5,900.
The depreciation cost of delivery van for
the month of January is RM770.
For the month of January, a total of 6,300
direct labour hours have been utilised.
Chapter 2 Solutions
Managerial Accounting
Ch. 2 - Prob. 1MCQCh. 2 - A company uses direct labor costs to apply...Ch. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - Some companies use labor cost to apply factory...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQ
Ch. 2 - Prob. 6DQCh. 2 - GOOGLE Google uses a “time ticket” for some...Ch. 2 - What events cause debits to be recorded in the...Ch. 2 - GOOGLE Google applies overhead to product costs....Ch. 2 - Prob. 10DQCh. 2 -
11. Why must a company use predetermined...Ch. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 1QSCh. 2 - Prob. 2QSCh. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Prob. 5QSCh. 2 - Prob. 6QSCh. 2 - Prob. 7QSCh. 2 - Prob. 8QSCh. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Prob. 12QSCh. 2 - Prob. 13QSCh. 2 - Prob. 14QSCh. 2 - Job order productions C1 Refer to this chapter’s...Ch. 2 - Prob. 1ECh. 2 - Prob. 2ECh. 2 - Exercise 15-13 Analysis of cost flows C2
As of the...Ch. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Exercise 15-7 Cost flows in a job order costing...Ch. 2 - Prob. 8ECh. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Prob. 12ECh. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Prob. 1PSACh. 2 - Prob. 2PSACh. 2 - Prob. 3PSACh. 2 - Prob. 4PSACh. 2 - Prob. 5PSACh. 2 - Prob. 1PSBCh. 2 - Prob. 2PSBCh. 2 - Prob. 3PSBCh. 2 - Prob. 4PSBCh. 2 - Prob. 5PSBCh. 2 - SERIAL PROBLEM Business Solutions P1 P2 P3 (This...Ch. 2 - Prob. 1GLPCh. 2 - Prob. 1AACh. 2 - Prob. 2AACh. 2 - Apple and Samsung compete in the global...Ch. 2 - ETHICS CHALLENGE P3 BIN 15-3 Assume that your...Ch. 2 - COMMUNICATING IN PRACTICE C1 C2
BTN 15-4 Assume...Ch. 2 - Prob. 3BTNCh. 2 - Prob. 4BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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