S178

Materials Inventory
52000
33000

Total
Bal

52000 Total
19000

33000

Work in Process Inventory

30000
125000
60000
54000
Total
Bal.

Finished Goods Inventory

125000
110000

Total
Bal.

125000 Total
15000

110000

52000 Total
Bal.

54000
2000

Total
Bal.

72000 Total
0

Total
Bal

110000 Total
110000

33000=3000(MO)+30000(WPI)
()Costofdirectmaterialsusedis..30000

3.
4.

=60000
=12000
:125000
:110000()

72000

Cost of Goods Sold

110000

Answer:
1. MaterialsInventory

2.

125000

Manufacturing Wages
72000
72000

Manufacturing Overhead
3000
54000
12000
37000
Total

144000 Total
19000

S1712

ThomasTibbs110000peryear,works2000hoursperyear.
=110000/2000=55/hr

55x14=770forClient507

E1720

2009
: 600000
: 1500000
: 60000

1.
2.

=600000/60000=10$/hr

Journal Entries:
Manufacturing

480000
Overhead
Accumulated Depreciation 480000
property,Plant,and equ.
Manufacturing

20000
Overhead
Property taxes on plant

20000

Manufacturing
c

25000
Overhead
Sales salaries

25000

Manufacturing
d

15000
Overhead
Delivery drivers' wages

15000

Manufacturing
e

10000
Overhead
Plant janitors' wages

10000

Manufacturing
f

550000
Overhead
Machine hours 55000

550000

5.

Manufacturing Overhead
a
480000
600000
b
20000
c
25000
d
15000
e
10000
f
550000
Total
1100000 Total 600000
Bal.
500000

500000
6.

Manufacturing Overhead
a
480000
600000
b
20000
500000
c
25000
d
15000
e
10000
f
550000
Total 1100000 Total 1100000
Bal.
0

500000!

P1728A

P1729A

1. =250000/1000000=0.25
2.

3.

4.

FoodCoop:
DirectLaborCost:750X160=120000
IndirectLaborCost: 120000X0.25=30000
LicensingCosts:2000
TravelCosts:14000
Total:166000

MesillaChocolates:
DirectLaborCost:50X160=8000
IndirectLaborCost: 8000X0.25=2000
LicensingCosts:150
TravelCosts:0
Total:10150

FoodCoop:
Fee:166000X1.2=199200

MesillaChocolates
Fee:10150X1.2=12180