Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Chapter 4, Problem 63P
(Appendix 4A)
Lowder Inc. builds custom conveyor systems for warehouses and distribution centers. During the month of July, the following occurred:
- a. Purchased materials on account for $42,630.
- b. Requisitioned materials totaling $27,000 for use in production: $12,500 for Job 703 and the remainder for Job 704.
- c. Recorded direct labor payroll for the month of $26,320 with an average wage of $14 per hour. Job 703 required 780 direct labor hours; Job 704 required 1,100 direct labor hours.
- d. Incurred and paid actual overhead of $19,950.
- e. Charged overhead to production at the rate of $10 per direct labor hour.
- f. Completed Job 703 and transferred it to Finished Goods.
- g. Kept Job 704, which was started during July, in process at the end of the month.
- h. Sold Job 700, which had been completed in May, on account for cost plus 30%.
Beginning balances as of July 1 were:
Required:
- 1. Prepare the journal entries for transactions a through e.
- 2. Prepare simple
job-order cost sheets for Jobs 703 and 704. - 3. Prepare the journal entries for transactions f and h.
- 4. Calculate the ending balances of the following: (a) Raw Materials, (b) Work in Process, and (c) Finished Goods.
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Lowder Inc. builds custom conveyor systems for warehouses and distribution centers. Duringthe month of July, the following occurred:a. Purchased materials on account for $42,630.b. Requisitioned materials totaling $27,000 for use in production: $12,500 for Job 703 andthe remainder for Job 704.c. Recorded direct labor payroll for the month of $26,320 with an average wage of $14 perhour. Job 703 required 780 direct labor hours; Job 704 required 1,100 direct labor hours.d. Incurred and paid actual overhead of $19,950.e. Charged overhead to production at the rate of $10 per direct labor hour.f. Completed Job 703 and transferred it to Finished Goods.g. Kept Job 704, which was started during July, in process at the end of the month.h. Sold Job 700, which had been completed in May, on account for cost plus 30%.Beginning balances as of July 1 were:Raw Materials $ 6,070Work in Process (for Job 703) 10,000Finished Goods (for Job 700) 6,240Required:1. Prepare the journal entries for transactions…
Journal Entries, T-Accounts
Lincoln Brothers Company makes jobs to customer order. During the month of May, the following occurred:
a. Materials were purchased on account for $45,760.
b. Materials totaling $40,880 were requisitioned for use in producing various jobs.
c. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour.
d. Actual overhead of $8,860 was incurred and paid in cash.
e. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour.
f. Completed jobs costing $59,000 were transferred to Finished Goods.
g. Jobs costing $58,000 were sold on account for $ 73,850. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs.
Beginning balances as of May 1 were:
Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
Required:
$1,300
3,400
2,640
1 more notification
1. Prepare the journal entries for the preceding events.
The following transactions were incurred by Mooney Fabricators during January, the first month of its fiscal year.
(Click the icon to view the transactions.)
Requirements
1. Record the proper journal entry for each transaction.
2. By the end of January, was manufacturing overhead overallocated or underallocated? By how much?
Date
TWIT
b. $178,000 of materials was used in production; of this amount, $146,000
Journal Entry
uyumiv
era boln
Accounts
b. Work in Process Inventory
Manufacturing Overhead
Raw Materials Inventory
Debit
More info
a. $205,000 of materials was purchased on account.
b. $178,000 of materials was used in production; of this amount, $146,000 was
used on specific jobs.
C. Manufacturing labor and salaries for the month totaled $225,000. A total of
$215,000 of manufacturing labor and salaries was traced to specific jobs, and
the remainder was indirect labor used in the factory.
d.
e.
f.
The company recorded $24,000 of depreciation on the plant and plant
equipment. The…
Chapter 4 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 4 - What are job-order costing and process costing?...Ch. 4 - Give some examples of service firms that might use...Ch. 4 - What is normal costing? How does it differ from...Ch. 4 - Why are actual overhead rates seldom used in...Ch. 4 - Explain how overhead is assigned to production...Ch. 4 - What is underapplied overhead? When Cost of Goods...Ch. 4 - What is overapplied overhead? When Cost of Goods...Ch. 4 - Suppose that you and a friend decide to set up a...Ch. 4 - Why might a company decide to use departmental...Ch. 4 - What is the role of materials requisition forms in...
Ch. 4 - Carver Company uses a plantwide overhead rate...Ch. 4 - Prob. 12DQCh. 4 - Is the cost of a job related to the price charged?...Ch. 4 - If a company decides to increase advertising...Ch. 4 - How can a departmental overhead system be...Ch. 4 - (Appendix 4B) Describe the difference between...Ch. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - (Appendix 4B) Explain the difference between the...Ch. 4 - Which of the following statements is true? a....Ch. 4 - The ending balance of which of the following...Ch. 4 - In a normal costing system, the cost of a job...Ch. 4 - The predetermined overhead rate equals a. actual...Ch. 4 - Prob. 5MCQCh. 4 - Applied overhead is a. an important part of normal...Ch. 4 - The overhead variance is overapplied if a. actual...Ch. 4 - Which of the following is typically a job-order...Ch. 4 - Which of the following is typically a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Wilson Company has a predetermined overhead rate...Ch. 4 - (Appendix 4A) When a job costing 2,000 is finished...Ch. 4 - (Appendix 4B) Those departments responsible for...Ch. 4 - Prob. 16MCQCh. 4 - (Appendix 4B) An example of a producing department...Ch. 4 - (Appendix 4B) An example of a support department...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - (Appendix 4B) The method that assigns support...Ch. 4 - Predetermined Overhead Rate, Overhead Application...Ch. 4 - Overhead Variance (Over- or Underapplied), Closing...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Prepare Job-Order Cost Sheets, Predetermined...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Predetermined Overhead Rate, Overhead Application...Ch. 4 - Overhead Variance (Over- or Underapplied), Closing...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Prepare Job-Order Cost Sheets, Predetermined...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Use the following information for Brief Exercises...Ch. 4 - Job-Order Costing versus Process Costing a....Ch. 4 - Job-Order Costing versus Process Costing a. Auto...Ch. 4 - Calculating the Predetermined Overhead Rate,...Ch. 4 - Calculating the Predetermined Overhead Rate,...Ch. 4 - Calculating Departmental Overhead Rates and...Ch. 4 - Job-Order Costing Variables On July 1, Job 46 had...Ch. 4 - Source Documents For each of the following...Ch. 4 - Applying Overhead to Jobs, Costing Jobs Jagjit...Ch. 4 - Applying Overhead to Jobs, Costing Jobs Gorman...Ch. 4 - Balance of Work in Process and Finished Goods,...Ch. 4 - Job-Order Cost Sheets, Balance in Work in Process...Ch. 4 - Cost Flows Consider the following independent...Ch. 4 - Job Cost Flows Roseler Company uses a normal...Ch. 4 - Calculation of Work in Process and Cost of Goods...Ch. 4 - (Appendix 4A) Journal Entries Yurman Inc. uses a...Ch. 4 - (Appendix 4B) Direct Method of Support Department...Ch. 4 - (Appendix 4B) Sequential Method of Support...Ch. 4 - Overhead Application and Job-Order Costing Heurion...Ch. 4 - Prob. 54PCh. 4 - Calculating Ending Work in Process, Income...Ch. 4 - Overhead Applied to Jobs, Departmental Overhead...Ch. 4 - Overhead Rates, Unit Costs Folsom Company...Ch. 4 - Calculate Job Cost and Use It to Calculate Price...Ch. 4 - (Appendix 4A) Unit Cost, Ending Work in Process,...Ch. 4 - (Appendix 4A) Journal Entries, Job Costs The...Ch. 4 - (Appendix 4A) Predetermined Overhead Rates,...Ch. 4 - (Appendix 4A) Overhead Application, Journal...Ch. 4 - (Appendix 4A) Journal Entries, T-Accounts Lowder...Ch. 4 - (Appendix 4B) Support Department Cost Allocation...Ch. 4 - (Appendix 4B) Support Department Cost Allocation:...Ch. 4 - Overhead Assignment: Actual and Normal Activity...Ch. 4 - Tonya Martin, CMA and controller or the Parts...
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