Question : 161. ABC Printing Company uses a job order cost system. (a)Indicate the : 1251543

 

161. ABC Printing Company uses a job order cost system. 

(a)Indicate the source of the data for debiting Work in Process for each of the following:

(1)Direct materials requisitioned

(2)Direct labor used

(b)Indicate the source of the data for crediting Work in Process for jobs completed.

(c)Present a list of the three controlling accounts used in the general ledger to record the inventories and, in each case, indicate the related subsidiary ledger.

 

 

(a)(1)Summary of materials requisitions

(2)Summary of time tickets

(b)Summary of job cost sheets for jobs completed

(c)Controlling Account      Subsidiary Ledger

MaterialsMaterials ledger

Work in ProcessCost ledger

Finished GoodsFinished goods ledger (or stock ledger)

 

162. During June, the receipts and issuances of Material No. A2FO are as follows: 

Received

June  3Balance1,100 units at $15

161,700 units at $17

29900 units at $18

Issued

June 11700 units for Job No. 116

181,900 units for Job No. 117

30800 units for Job No. 118

 

(a)Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method.

(b)Present the journal entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method.

 

 

(a)June 11issue:700 at $15$10,500

18issue:400 at $15 plus 1,500 at $1731,500

31issue:200 at $17 plus 600 at $1814,200

$56,200

 

(b)Work in Process56,200

Materials56,200

 

163. A summary of the time tickets for August follows: 

Description     Amount Description     Amount

Job No. 321$11,000Job No. 342$8,300

Job No. 3299,200Job No. 3465,700

Job No. 3363,000Indirect labor6,000

Present the journal entries to record (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

 

(a)Work in Process37,200

Factory Overhead6,000

Wages Payable43,200

(b)Work in Process26,040

Factory Overhead26,040

 

164. The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year: 

Work in Process

Balance, July 160,200

Direct materials147,000

Direct labor120,000

Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200. 

(a)Prepare the journal entries to record (1) the application of factory overhead to production during July and (2) the jobs completed during July.

(b)What is the balance of the factory overhead account on July 31?

(c)Was factory overhead overapplied or underapplied on July 31?

(d)Determine the cost of the unfinished jobs on July 31.

 

 

(a)(1)Work in Process72,000

Factory Overhead72,000

(2)Finished Goods301,200

Work in Process301,200

(b)$3,000 debit

(c)Underapplied

(d)Total debits to Work in Process:

Balance, July 1$  60,200

Direct materials147,000

Direct labor120,000

Factory overhead72,000  $399,200

Less cost of goods finished during July301,200

Balance, Work in Process, July 31 (cost of  unfinished jobs)$  98,000

 

165. Present entries to record the following summarized operations related to production for a company using a job order cost system: 

(a)Materials purchased on account$167,000

(b)Prepaid expenses incurred on account12,200

(c)Materials requisitioned:

For production orders153,700

For general factory use2,700

(d)Factory labor used:

On production orders141,300

For general factory purposes12,000

(e)Depreciation on factory equipment37,000

(f)Expiration of prepaid expenses,

chargeable to factory6,100

(g)Factory overhead costs incurred on account67,000

(h)Factory overhead applied, based on machine hours105,300

(i)Jobs finished415,300

(j)Jobs shipped to customers: cost, $412,000;

selling price638,000

 

 

(a)Materials167,000

Accounts Payable167,000

(b)Prepaid Expenses12,200

Accounts Payable12,200

(c)Work in Process153,700

Factory Overhead2,700

Materials156,400

(d)Work in Process141,300

Factory Overhead12,000

Wages Payable153,300

(e)Factory Overhead37,000

Accumulated Depreciation –

Factory Equipment37,000

(f)Factory Overhead6,100

Prepaid Expenses6,100

(g)Factory Overhead67,000

Accounts Payable67,000

(h)Work in Process105,300

Factory Overhead105,300

(i)Finished Goods415,300

Work in Process415,300

(j)Cost of Goods Sold412,000

Finished Goods412,000

Accounts Receivable638,000

Sales638,000

 

166. The balance of Material Q on May 1 and the receipts and issuances during May are as follows: 

Balance May 18 at $32

Received May 1123 at $34

Received May 2515 at $35

Issued May 1714

Issued May 2718

Determine the cost of each of the issuances under a perpetual system, using the first-in, first-out method.

 

May 17 issue:8 at $32 plus 6 at $34$460

May 27 issue:17 at $34 plus 1 at $35$613

 

167. Prepare the journal entry for materials and labor, based on the following: 

Raw materials issued:$850for Job 609

600for general use in the factory

Labor time tickets:$1,600for Job 609

400for supervision

 

 

Work in Process850

Factory Overhead600

Raw Materials1,450

Work in Process1,600

Factory Overhead400

Wages Payable2,000

 

168. Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system: 

MaterialsWork in Process

(a)(a)(d)

(b)

(c)

Wages Payable(f)

(b)

Factory OverheadFinished Goods

(a)(c)(d)(e)

(b)(f)(f)

Cost of Goods Sold

(e)

(f)

Describe each of the six transactions.

 

(a)Direct and indirect materials are issued.

(b)Direct and indirect labor costs are incurred.

(c)Factory overhead is applied.

(d)Completed goods are transferred to finished goods.

(e)Goods are sold.

(f)Underapplied overhead is allocated.

 

169. On January 2nd, Newsprint Manufacturing purchases 5 rolls of paper on account at $125.00 per roll for use within the production process. On January 5th 4 rolls of this paper are issued to Job 010507A in the Printing Department. The Printing Department records $675.00 in direct labor and $1,150.00 of factory overhead to Job 010507A. On January 8th Printing transfers Job 010507A to the Folding Department. The folding department applies $450.00 in direct labor and $655.00 in factory overhead to Job 010507A. Job 010507A is transferred to Finished Goods Inventory on January 9th. 

(a)Journalize the purchasing of the paper to Raw Materials Inventory.

(b)Journalize the transfer of raw materials to work in process, the application of direct labor, and the application of manufacturing overhead to Job 010507A while in the Printing Department.

(c)Journalize the transfer of Job 010507A to the Folding Department at actual cost.

(d)Journalize the application of direct labor, and the application of manufacturing overhead to Job 010507A while in the Folding Department.

(e)Journalize the transfer of Job 010507A to Finished Goods Inventory at actual cost.

 

(a)  Jan.  2    Raw Materials                                             625.00                              Accounts Payable                                         625.00(b)  Jan.  5    Work in Process – Job 010507A – Printing                   500.00                              Raw Materials                                               500.00      Jan.  5     Work in Process – Job 010507A –  Printing             675.00                              Wages Payable                                       675.00      Jan.  5     Work in Process – Job 010507A – Printing                  1,150.00                              Factory Overhead                                1,150.00(c)  Jan.  8     Work in Process – Job 010507A – Folding                  2,325.00                              Work in Process – Job 010507A – Printing             2,325.00(d)  Jan.  8     Work in Process – Job 010507A –  Folding         450.00                              Wages Payable                                        450.00      Jan.  8     Work in Process – Job 010507A – Folding                     655.00                              Factory Overhead                                            655.00(e)  Jan.  9     Finished Goods                                                        3,430.00                             Work in Process – Job 010507A – Folding                 3,430.00