Pages

▼

Tuesday, 6 November 2012

Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows.

Problem 19-3A Source documents, journal entries, and accounts in job order cost accounting L.O. P1, P2, P3
[The following information applies to the questions displayed below.]

Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows.

a. Purchased raw materials on credit, $240,000.
b. Paid $128,600 cash for factory wages.
c. Paid $15,500 cash to a computer consultant to reprogram factory equipment.
d. Materials requisitions record use of the following materials for the month.

Job 136 $ 48,500
Job 137 32,000
Job 138 20,000
Job 139 22,400
Job 140 6,600
Total direct materials 129,500
Indirect materials 21,000
Total materials used $ 150,500

e. Time tickets record use of the following labor for the month.

Job 136 $ 12,300
Job 137 10,600
Job 138 38,100
Job 139 39,200
Job 140 3,400
Total direct labor 103,600
Indirect labor 25,000
Total $ 128,600

f. Applied overhead to Jobs 136, 138, and 139.
g. Transferred Jobs 136, 138, and 139 to Finished Goods.
h. Sold Jobs 136 and 138 on credit at a total price of $545,000.
i.
The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).

Depreciation of factory building $ 69,500
Depreciation of factory equipment 37,000
Expired factory insurance 11,000
Accrued property taxes payable 35,500

j.
Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.
Section BreakProblem 19-3A Source documents, journal entries, and accounts in job order cost accounting L.O. P1, P2, P3
1.
award:
3 out of
3.00 points
Problem 19-3A Part 1

Required:
1.
Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.)

Job No. 136 Job No. 137 Job No. 138 Job No. 139 Job No. 140
Materials $ 48,500 correct $ 32,000 correct $ 20,000 correct $ 22,400 correct $ 6,600 correct
Labor 12,300 correct 10,600 correct 38,100 correct 39,200 correct 3,400 correct
Overhead 24,600 correct 21,200 correct 76,200 correct 78,400 correct 6,800 correct
Total cost $ 85,400 correct $ 63,800 correct $ 134,300 correct $ 140,000 correct $ 16,800 correct
WorksheetProblem 19-3A Part 1

2.
award:
5.78 out of
6.00 points
Problem 19-3A Part 2

2.
Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. )
General Journal Debit Credit
a. Raw materials inventory correct 240,000 correct
Accounts payable correct 240,000 correct
b. Factory payroll correct 128,600 correct
Cash correct 128,600 correct
c. Factory overhead correct 15,500 correct
Cash correct 15,500 correct
d. Goods in process inventory correct correct
Factory overhead correct correct
Raw materials inventory correct 150,500 correct
e. Goods in process inventory correct correct
Factory overhead correct correct
Factory payroll correct 128,600 correct
f. Goods in process inventory correct 179,200 correct
Factory overhead correct 179,200 correct
g. Finished goods inventory correct 359,700 correct
Goods in process inventory correct 359,700 correct
h. Accounts receivable correct 545,000 correct
Sales correct 545,000 correct
Cost of goods sold correct 219,700 correct
Finished goods inventory correct 219,700 correct
i. Factory overhead correct 153,000 correct
Accum. depreciation-factory building correct correct
Accum. depreciation-factory equipment correct correct
Prepaid insurance correct correct
Property taxes payable correct correct
j. Goods in process inventory correct 77,200 incorrect
Factory overhead correct 77,200 incorrect
WorksheetProblem 19-3A Part 2

3.
award:
5.43 out of
6.00 points
Problem 19-3A Part 3

3.
Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Then post the journal entries to these T-accounts and determine the balance of each account. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

GENERAL LEDGER ACCOUNTS
Raw Materials Inventory
a. correct 240,000 correct d. correct 150,500 correct
Bal. 89,500 correct

Goods in Process Inventory
d. correct 129,500 correct g. correct 359,700 correct
e. correct 103,600 correct
f. correct 179,200 correct
j. correct 77,200 incorrect
Bal. 129,800 incorrect

Finished Goods Inventory
g. correct 359,700 correct h. correct 219,700 correct
Bal. 140,000 correct

Factory Payroll
b. correct 128,600 correct e. correct 128,600 correct
Bal. 0 correct

Factory Overhead
c. correct 15,500 correct f. correct 179,200 correct
d. correct 21,000 correct j. correct 77,200 incorrect
e. correct 25,000 correct
i. correct 153,000 correct
Bal. 256,400 incorrect

Cost of Goods Sold
h. correct 219,700 correct
Bal. 219,700 correct
WorksheetProblem 19-3A Part 3

4.
award:
3 out of
3.00 points
Problem 19-3A Part 4

4.
Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.)
Reports of Job Costs
Goods in Process Inventory
Job 137 correct $ 63,800 correct
Job 140 correct 16,800 correct
Balance $ 80,600 correct
Finished Goods Inventory
Job 139 correct $ 140,000 correct
Balance $ 140,000 correct
Cost of Goods Sold
Job 136 correct $ 85,400 correct
Job 138 correct 134,300 correct
Balance $ 219,700 correct
at

No comments:

Post a Comment