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Question # 1 Garcia Manufacturing uses a job orde...

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Question # 1 Garcia Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2010, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19,600, direct labor $11,147, and manufacturing overhead $15,213. As of January 1, Job No. 49 had been completed at a cost of $90,515 and was part of finished goods inventory. There was a $15,493 balance in the Raw Materials Inventory account. During the month of January, Garcia Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $121,773 and $158,551, respectively. The following additional events occurred during the month. Purchased additional raw materials of $89,950 on account. Incurred factory labor costs of $64,305. Of this amount $15,764 related to employer payroll taxes. Incurred manufacturing overhead costs as follows: indirect materials $16,286; indirect labor $14,493; depreciation expense $18,684, and various other manufacturing overhead costs on account $19,182. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 50 $10,307 $ 4,494 51 39,187 24,570 52 30,647 25,210 Calculate the predetermined overhead rate for 2010, assuming Garcia Manufacturing estimates total manufacturing overhead costs of $1,148,984, direct labor costs of $700,600, and direct labor hours of 19,208 for the year. % Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit (To record purchase of raw materials.) (To record factory labor costs.) (To record overhead costs.) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in first part of question. (Round answers to 0 decimal places, e.g. 1,250.) Account/Description Debit Credit (To assign direct materials to production.) (To assign labor to production.) (To assign manufacturing overhead to production.) Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50. Post all costs to the job cost sheets as necessary. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month. (Round answers to 0 decimal places, e.g. 1,250.) Job No. 50 Date Direct materials Direct labor Manufacturing Overhead Beg. $ $ $ Jan. $ $ $ Cost of completed job Direct materials $ Direct labor Manufacturing overhead Total cost $ Job No. 51 Date Direct materials Direct labor Manufacturing Overhead Jan. $ $ $ $ $ $ Cost of completed job Direct materials $ Direct labor Manufacturing overhead Total cost $ Job No. 52 Date Direct materials Direct labor Manufacturing Overhead Jan. $ $ $ Account/Description Debit Credit Prepare the journal entry (or entries) to record the sale of any job(s) during the month. (Round answers to 0 decimal places, e.g. 1,250.) Account/Description Debit Credit (To record cost of jobs.) (To record sale of jobs.) What is the balance in the Finished Goods Inventory account at the end of the month? $ What does this balance consist of? What is the amount of over- or underapplied overhead? $ Question # 2 Enos Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2010, the general ledger for Enos Inc. contains the following data. Raw Materials Inventory $4,547 Manufacturing Overhead Applied $32,579 Work in Process Inventory $5,113 Manufacturing Overhead Incurred $32,005 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Element Fowler Haines Krantz Direct materials $ 542 $ 784 $ 949 Direct labor 360 510 420 Manufacturing overhead 432 612 504 $1,334 $1,906 $1,873 During June, raw materials purchased on account were $4,334, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $710 and miscellaneous costs of $472 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Customer Job Materials Requisition Slips Time Tickets Fowler $ 756 $ 450 Elgin 2,499 790 Haines 447 360 Krantz 1,922 1,600 Fowler 324 400 5,948 3,600 General use 1,819 1,700 $7,767 $5,300 Overhead was charged to jobs at the same rate of $1.2 per dollar of direct labor cost. The patios for customers Fowler, Haines, and Krantz were completed during June and sold for a total of $18,417. Each customer paid in full. Journalize the June transactions: (i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of direct materials, labor, and overhead to production; and (iii) completion of jobs and sale of goods. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit (Purchase of raw materials.) (To record factory labor costs.) (To record manufacturing overhead costs.) (To assign raw materials to production.) (To assign factory labor to production.) (To assign manufacturing overhead to production.) (To record completion of jobs.) (To record sale of jobs.) (To record cost of jobs.) Post the entries to Work in Process Inventory. Work in Process Inventory 6/1 Balance June Completed Work Direct materials Direct labor Overhead applied 6/30 Balance Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. Work in process inventory $ Job: $ Prepare a cost of goods manufactured schedule for June. (List amounts from largest to smallest eg 10, 5, 3, 2.) ENOS INC. Cost of Goods Manufactured Schedule For the Month Ended June 30, 2010 $ $ Total manufacturing costs Total cost of work in process Less: Cost of goods manufactured $

 

Paper#6405 | Written in 18-Jul-2015

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