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Documente Cultură
EXERCISES
E-1
Req. (1)
Rate of Factory overhead to direct Labor cost =
x 100
Rs. 140,000
Rs. 50,000
50,000
40,000
_______
Rs. 140,000
E-2
Req.
Amount of direct labor and factory overhead in finished good.
Finished goods
Rs. 176,000
Direct material
Direct labor
Factory overhead
Rs. 40,000
80,000
56,000
Rs. 176,000
Working:
Rate of factory overhead =
=
224,000 x 100
320,000
70%
E- 2 (cont.)
Factory overhead
136,000
70%
136,000 (170%)
100% + 70%
Direct labor
136,000 x 100
170
= Rs. 80,000
Factory overhead
E. 3
Televans company
Cost of goods sold statement
Rs.
Rs.
75,000
? 336,000
411,000
85,000
326,000
? 225,000
551,000
135,000
686,000
80,000
766,000
30,000
? 736,000
90,000
826,000
110,000
?
716,000
E- 4
(1)Estimated Cost to produce:
Direct material
$13,000
Direct labor
15,000
F.O.H Applied:
Molding department (2.70 x 1,000)
2,700
Decorating department (15,000 9,000 = 6,000 x 35%) 2,100
Total Cost
$32,800
4,800
=
=
E- 5
Hansford Inc.
Income Statement
For the year ended September 30,-------Net sales
Less: cost of goods sold
Gross Profit
Less: Operating Expenses
Marketing expenses
Administrative Expenses
Net Income
$182,000
114,200
67,800
$ 14,100
22,900
37,000
$ 30,800
E- 5 (cont.)
Hansford Inc.
Cost of goods sold statement
For the year ended September 30,
Direct Material
Opening inventory
Add:
Material purchased
Cost of material available for use
Less:
Ending inventory
Cost of material Used
Add:
Direct Labor Cost
Prime Cost
Add:
Factory overhead (30,000 x 150%)
Total manufacturing cost
Work in process:
Add:
Opening inventory
Cost of good to be manufactured
Less:
Ending inventory
Cost of goods manufactured
Finished goods:
Add:
Opening inventory
Cost of goods available for sale
Less:
Ending inventory
Cost of goods sold at normal
Add: Under Applied F.O.H
Cost of goods sold at actual
7,000
108,900
115,900
74,000
41,900
30,000
71,900
45,000
116,900
9,600
126,500
13,000
113,500
15,000
128,500
17,500
111,000
3,200
114,200
E6
Req. 1
Direct material
Applied
Date
Amount
F.O.H
date hoursrate cost
14/9
20/9
22/9
$600
331
200
$1131
$800
20/9
26/9
90
70
$6.20 $558
7.30 511
20/9
26/9
90
70
$5
5
$450
350
$1,069
Req. 2.
Sales Price =
=
=
=
cost + Profit
3,000 +
(3,000 x 40%)
$3,000
+
1,200
$4,200
Working:
Cost
=
=
1,131+1,069+800
$3,000
E7
Job cost sheet
Job no.
Opening
Material
110,000
Labor
130,000
F.O.H
78,000
Total
W-I-P ending (job 38)
36
$36,000
37
18,000
38
total
-----
$54,000
44,000
34,000
32,000
40,000
48,000
42,000
24,000
28,800
25,200
$144,000
$128,800
$99,200
$99,200
=
E 7 (cont.)
Dr.
Balance b/d $54,000
W-I-P
finished goods
Cr.
$272,800
Material
Labor
F.O.H
Dr.
W-I-P
110,000
130,000
78,000
372,000
$272,800
Dr.
Finished goods
Balance c/d
99,200
372,000
Finished Goods
Cr.
cost of goods sold $272,800
Cost of goods sold
$272,800
balance c/d
Cr.
$272,800
Journal Entries
(a) W-I-P
$110,000
Material
$110,000
(b) W-I-P
130,000
Payroll
130,000
(c) W-I-P
78,000
F.O.H Applied
78,000
272,800
272,800
E8
Job no.
Opening
98
------
99
-----
total
$96,000
Material
130,000
Labor
270,000
F.O.H
135,000
Total
60,000
30,000
40,000
70,000
80,000
60,000
35,000
40,000
$336,000
$135,000
120,000
$160,000
$160,000
$336,000
Dr.
Balance b/d $96,000
Material
Labor
F.O.H
Dr.
W-I-P
W-I-P
finished goods
130,000
270,000
135,000
631,000
$471,000
160,000
631,000
Finished Goods
Cr.
cost of goods sold $336,000
_______
471,000
Dr.
Finished goods
Balance c/d
Cr.
$471,000
Balance c/d
135,000
471,000
E 8 (cont.)
Journal Entries
(a) W-I-P
$130,000
Material
$130,000
(b) W-I-P
270,000
Payroll
270,000
(c) W-I-P
135,000
F.O.H Applied
135,000
471,000
471,000
336,000
336,000
E9
Thornton Manf. Co.
$
5,000
? 95,000
$ 117,000
$ 120,000
3,000
E 9 (cont.)
Journal Entries for December month
Req. 1.
(1) Material
Account payable
(2) W-I-P
$95,000
$90,000
90,000
Material
90,000
(3) W-I-P
160,000
Payroll
160,000
(4) W-I-P
120,000
F.O.H Applied
120,000
390,000
390,000
375,000
375,000
Req. 2.
(1) F.O.H Applied
Cost of goods sold
3,000
3,000
PROBLEMS
P-1
(1)Total cost of work put into process
Direct material
Opening inventory
Add:
Purchases
Cost of material available for use
Less:
Closing inventory
Cost of material used
$
20,000
58,000
78,000
18,000
60,000
44,800
27,600
48,000
36,800
$ 217,200
217,200
15,000
232,200
17,600
$ 214,600
214,600
22,000
236,600
19,000
$ 219,600
Req. 4
Conversion cost
=
72,400 + 84,800
P-1 (cont.)
Req. 5
Material purchased = $ 58,000
= $157,200
P-2
Req. 1
Opening inventory
Add:
Purchases
Cost of material available
Less:
Closing inventory
Cost of material used
Direct Material
$
10,000
50,000
60,000
25,000
$ 35,000
Req. 2
F.O.H Applied
25,000 x 3
$75,000
Req. 3
Ending W.I.P
Direct material
Direct labor (3,000 x 4)
Factory overhead (3,000 x 3)
$
5,000
12,000
9,000
$ 26,000
Req. 4
Direct material
35,000
Direct labor
100,000
F.O.H Applied
75,000
Total manufacturing cost
210,000
Add:
Opening W.I.P
50,000
Cost of goods available for sale
260,000
Less:
Closing W.I.P
26,000
Cost of goods manufactured
$ 234,000
P 2 (cont.)
Req. 5
Cost of goods sold before disposition of under applied F.O.H
$
Cost of goods manufactured
Add:
Opening finished goods
Cost of goods available for sale
Less:
Closing finished goods
Cost of goods sold at normal
Indirect labor
=
234,000
70,000
304,000
60,000
244,000
Req. 6
=
Payroll Direct Labor
150,000 100,000 =
$50,000
Working:
Dr.
Cash
$140,000
Balance c/d
20,000
160,000
Misc. F.O.H =
=
=
Cr.
payroll
F.O.H Applied
75,000
$80,000
Req. 7
+
+
150,000
160,000
REQ. 8
Account Payable Nov. 1.
Dr.
Cash
Balance c/d
Cr.
balance b/d$20,000
15,000
70,000
material
50,000
70,000
Important note:
In this question point d direct labor hours are missed printing, so
we assume 3,000 direct labor hours for solving this question.
P3
Req. 1
Columbus Co.
Cost of goods sold statement
For the year ended Oct. 30
Direct Material
Opening inventory
Add:
Material purchased
Cost of material available for use
Less:
Ending inventory
Cost of material Used
Add:
Direct Labor Cost
Prime Cost
Add:
Factory overhead
Total manufacturing cost
$
40,700
24,800
65,500
35,700
29,800
18,600
48,400
27,450
75,850
Work in process:
Add:
Opening inventory
Cost of good to be manufactured
Less:
Ending inventory
Cost of goods manufactured
Finished goods:
Add:
Opening inventory
Cost of goods available for sale
Less:
Ending inventory
Cost of goods sold
4,070
79,920
4,440
75,480
9,800
85,280
9,250
76,030
Working:
Number of units in closing inventory
2,800 + 20,400 20,700 = 2,500
Unit cost = 75,480/20,400 = $ 3.7/unit
P 3 (cont.)
Req. 2
Columbus co
Income statement
For the month of Oct. .
$
144,900
1,300
Sales
Less: sales return
Net sales
Less: cost of goods sold (as per schedule)
76,030
Gross profit
67,570
Less: operating expenses
Marketing expenses (25,050 + 30 + 16)
Admin expenses (19,700 + 20 + 24)
44,840
Net Income
$
143,600
25,096
19,744
$ 22,730
Req. 3
Actual F.O.H
Paid F.O.H
Indirect material
F.O.H (75% of manufacturing)
150 + 800
Indirect labor
Total
Less:
F.O.H Applied
Under applied F.O.H
20,100
3,950
950
4,400
$29,400
27,450
$ 1,950
P4
Req. 1
Morrisvile Co.
Balance sheet
As on 31, Dec. 19B
$
Liabilities
Assets
$
Fixed Assets
Property & equipments
30,000
(30,000 4,000)
15,000
Current Assets
Account Receivables
17,500
Finished goods
Less: reduce (33.333%)
26,000
$6,000
2,000
Fixed Liabilities
Capital Stock
current Liabilities
current liabilities
4,000
W.I.P
2,000
Less: Reduce (50%)
1,000
Material
4,000
Less: Reduce (50%)
2,000
Cash (balancing figure)
1,000
2,000
19,000
______
$ 62,500
______
$ 62,500
Working:
Opening Retained Earning
=
=
opening assets opening liabilities
57,500 17,500 30,000 =
$ 10,000
Req. 2
Morrisivile co
Income statement
For the month of Dec. .
$
Sales
Less: cost of goods sold (as per schedule)
40,000
Gross profit
20,000
Less: operating expenses
Marketing expenses (60,000 x 10%)
Admin expenses (60,000 x 15%)
15,000
Net Income
$
60,000
6,000
9,000
$ 5,000
P 4 (cont.)
Morrisivile Co.
Cost of goods sold statement
For the year ended Dec. 31
Direct Material
Opening inventory
Add:
Material purchased
Cost of material available for use
Less:
Ending inventory
$
4,000
15,000
19,000
2,000
P5
17,000
9,000
26,000
9,000
35,000
2,000
37,000
1,000
36,000
6,000
42,000
4,000
38,000
2,000
$ 40,000
Journal Entries
Dr. Rs
(a)
Material
6,000
Account payable
(b)
W-I-P
6,000
3,900
Material
(c)
Cr. Rs.
W-I-P
3,900
1,800
Material
1,800
(d)
F.O.H
1,700
Material
(e)
(f)
Material
1,700
500
W-I-P
400
F.O.H
100
Account payable
600
Material
(g)
600
Payroll
10,000
(h)
750
1,050
Accrued payroll
8,200
Accrued payroll
8,200
Cash
8,200
Dr. Rs.
(i)
W-I-P
6,000
F.O.H
2,000
Sales salaries
1,200
Admin salaries
800
Payroll
(j)
F.O.H
Cr. Rs
10,000
936
Sales salaries
140
Admin salaries
94
750
340
80
Working:
Total payroll taxes = Rs. 1,170
F.O.H (direct + indirect labor) = 1,170 x 8,000/10,000 = Rs. 936
Sales salaries
Admin salaries
(k)
F.O.H
1,504
Cash
(l)
W-I-P
6,000
F.O.H Applied
(m)
1,504
C.G.S
(6,000 x 100%)
6,000
18,100
W-I-P
18,100
Working: C.G.S
Job 2001= Opening inventory 10,000 + Issue 2,500- Return 400+ Direct labor
3,000+ F.O.H Applied 3000) = Rs. 18,100
Dr. Rs.
Account receivable
22,500
Sales
(n)
C.G.S
Cr. Rs.
22,500
8,000
W-I-P
Account receivables
8,000
10,000
Sales
(o)
Cash
10,000
26,000
Account receivable
(p)
C.G.S
26,000
40
F.O.H Applied
40
Working:
Total F.O.H = 1,700-100+2,000+936+1,504 = Rs. 6,040
F.O.H Applied = Rs. 6,000
Under applied F.O.H = 6,040 6,000 = Rs. 40
Subsidiary ledgers will be prepared for only job no. 2001, 2002 and 2003.
P-6
Job 621
$ 2,800
2,100
1,680
$ 6,580
Job 622
Job 623
$ 3,400
$ 1,800
2,700
1,350
2,160
1,080
$ 8,260
$ 4,230
7,400
5,900
(400)
8,160
6,320
6,528
5,056
$29,948
Journal Entries
Dr. Rs.
Cr. Rs.
(a) Materials ............................................................... 22,000
Accounts Payable.......................................
22,000
(b) Work in Process................................................... 18,600
Factory Overhead Control .................................. 2,400
Materials .....................................................
(c) Materials ............................................................... 600
Work in Process ........................................
Factory Overhead Control ........................
(d) Accounts Payable ...............................................
800
Materials .....................................................
21,000
400
200
800
Accrued Payroll
30,780
Cash
30,780
16,720
69,450
Req 3??
Materials
3/1 Bal. 17,000 (b) 21,000
(a)
19,000
(d)
800
(c)
600
21,800
36,600
14,800
Work in Process
3/1 Bal. 19,070
(c) 400
(b) 18,600
(i) 53,384
(f) 20,900
53,784
(h) 16,720
75,290
21,506
Finished Goods
3/1 Bal.
15,000
(j) 53,384
(i)
53,384
68,384
15,000
(3) TOPPER INC.
Schedule of Inventories, March 31
Materials ...........................................................................................................
.$14,800
Work in Process (Job 623)...............................................................................
21,506
Finished Goods ................................................................................................
15,000
Total ..............................................................................................
....................$51,306
Materials
3/1 Bal. 66,300.00
(d)
(a)
(b)
Finished Goods
3/1 Bal. 78,830.00 (g) 94,501.65
(g)
94,501.65
5,800.00
173,331.65
78,830.00
Work in Process
3/1 Bal. 292,621.00 (g) 94,501.65
(c)
98,884.00
(d)
53,730.00
(f)
30,200.15
475,435.15
380,933.50
Cost of Goods Sold
(g) 94,501.65
111,364.00
(c)
(e)
41,000.00
5,800.00 *
113,100.00
59,370.00
Accounts Payable
(a)
41,000.00
(b)
48,100.00
Accrued Payroll
(c)
111,364.00
Payroll
(c) 111,364.00
(c)
Over- or Underapplied
Factory Overhead
(3) 10,741.72
3/1 Bal. 12,300.00
1,558.28
117,500.00
P5-7 (Concluded)
(2) The total cost of each job at the end of March:
Job 204
Job 205
Job 206
Job 207
Total
$15,230.00 $ 40,450
$ 60,875.00 $16,640
9,480.00
11,320
10,490.00
5,800
$170,285.00
Direct labor ..............
21,430.00
55,240
43,860.00
26,844.00
22,750
28,920.00
20,370
219,414.00
Factory overhead .... 13,800.00
22,370
19,366.00
7,717.65*
7,475
8,314.50
6,693
85,736.15
Total Cost .................
$94,501.65 $159,605
$171,825.50
$49,503
$475,435.15
Direct materials .......
(2)
Dr.
Cr.
(a) Materials ............................................................... 115,020
Accounts Payable....................................... 115,020
(b) Payroll ................................................................... 110,000
Accrued Payroll .......................................... 110,000
(c) Work in Process................................................... 78,000
Factory Overhead Control .................................. 12,000
Marketing and Administrative Expenses .......... 20,000
Payroll .......................................................... 110,000
(d) Work in Process................................................... 108,175
Factory Overhead Control ..................................
7,520
Materials ..................................................... 115,695
(e) Work in Process................................................... 42,750
Applied Factory Overhead ........................ 42,750
(f) Cost of Goods Sold............................................. 190,350
Work in Process ........................................ 190,350
Accounts Receivable .......................................... 255,000
Sales ............................................................ 255,000
(g) Cash...................................................................... 247,000
Sales Discounts...................................................
13,000
Accounts Receivable ................................. 260,000
(h) Marketing and Administrative Expenses .......... 15,000
Factory Overhead Control .................................. 24,680
Cash ............................................................ 37,680
Accumulated DepreciationMachinery....
2,000
(i) Accounts Payable................................................ 85,000
Cash ............................................................ 85,000
(j) Applied Factory Overhead.................................. 42,750
Factory Overhead Control ........................ 42,750
Cost of Goods Sold............................................. 1,450
Factory Overhead Control .........................
1,450
(1) And (3) GENERAL LEDGER
Cash
1/1 Bal. 47,000 (h) 37,680
(g)
247,000
(i) 85,000
294,000
122,680
171,320
Materials
1/1 Bal. 21,500 (d)
115,695
(a)
115,020
136,520
20,825
Accounts Receivable
1/1 Bal. 50,000
(g) 260,000
(f)
255,000
305,000
45,000
Machinery
1/1 Bal. 45,300
Accumulated Depreciation
Machinery
1/1 Bal. 10,000
(h)
2,000
12,000
Finished Goods
1 /1 Bal. 32,500
Work in Process
1/1 Bal.
7,500 (f)
190,350
(c)
78,000
(d)
108,175
(e)
42,750
236,425
46,075
(i) 85,000
Accrued Payroll
(b) 110,000
Payroll
(b) 110,000
42,750
(c) 110,000
Accounts Payable
1/1 Bal. 58,875
(a) 115,020
173,895
88,895
Sales
(f) 255,000
Factory Overhead Control
(c) 12,000
(j)
(d) 7,520
(h) 24,680
44,200
(j)
1,450
44,200
Retained Earnings
1/1 Bal. 34,925
Sales Discounts
(g) 13,000
Cost of Goods Sold
Expenses
(f)
190,350
(i)
1,450
191,800
Common Stock
1/1 Bal. 100,000
1/1 Bal.-Mat.
1/1 Bal.-Lab.
1/1 Bal.-OH
(c) Labor
(d) Materials
(e) Overhead
2,500
(f) 88,350
2,000
1,000
20,000
51,600
11,250
88,350
Job 102
1/1 Bal.-Mat
600
1/1 Bal.-Lab
1,000
1/1 Bal.-OH
400
(c) Labor
40,000
(d) Materials 42,000
(e) Overhead 18,000
102,000
(f)
102,000
Job 103
(c) Labor
18,000
(d) Materials
(e) Overhead
46,075
14,575
13,500
P 3-9 (concluded)
(4) Mid-State COMPANY
Trial Balance
January 31
Cash ...........................................................................................171,320
Accounts Receivable ................................................................ 45,000
Finished Goods ......................................................................... 32,500
Work in Process ........................................................................ 46,075
Materials..................................................................................... 20,825
Machinery .................................................................................. 45,300
Accumulated DepreciationMachinery .................................
12,000
Accounts Payable......................................................................
88,895
Accrued Payroll .........................................................................
110,000
Common Stock..........................................................................
100,000
Retained Earnings.....................................................................
34,925
Marketing and Administrative Expenses................................
35,000
Sales...........................................................................................
255,000
Sales Discounts ........................................................................ 13,000
Cost of Goods Sold .................................................................. 191,800
Total
600,820 600,820
(5)
Mid-State COMPANY
Cost of Goods Sold Statement
For Month Ended January 31
Direct materials used................................................................ $108,175
Direct labor ...............................................................................
78,000
Applied factory overhead ........................................................
42,750
Total manufacturing cost at normal ....................................... $228,925
Add work in process inventory, January 1 .............................
7,500
$236,425
Less work in process inventory, January 31 .........................
46,075
Cost of goods sold ................................................................... $190,350
Add under applied factory overhead ......................................
1,450
Cost of goods soldadjusted ..............................................
$191,800