1. Prepare journal entries for the December 31 payroll. 2. Use T-accounts to compute the following: a. The total amount of materials requisitioned into work in process during December b. The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously) c. The total amount of manufacturing overhead recorded in work in process during December d. Ending balance in work in process, December 31 e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing overhead

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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4-1 Does the applicability of job costing differ between a manufacturer of airplanes and a manufac-
turer of steel constructions for housing? Explain.
4-2 If you have job costing on the one hand and process costing on the other, give some examples of
companies that are in between. Can you put an emphasis on the one or the other?
4-38 Overview of general ledger relationships. Brandon Company uses normal costing in its job-costing
system. The company produces custom bikes for toddlers. The beginning balances (December 1) and ending
balances (as of December 30) in their inventory accounts are as follows:
Beginning Balance 12/1
Materials Control
Work-in-Process Control
Manufacturing Department Overhead Control
Finished Goods Control
$2,100
6,700
-
1. Prepare journal entries for the December 31 payroll.
2. Use T-accounts to compute the following:
4,400
Ending Balance 12/31
$ 8,500
9,000
94,000
19,400
Additional information follows:
a. Direct materials purchased during December were $66,300.
b. Cost of goods manufactured for December was $234,000.
c. No direct materials were returned to suppliers.
d. No units were started or completed on December 31 and no direct materials were requisitioned on
December 31.
e. The manufacturing labor costs for the December 31 working day: direct manufacturing labor, $4,300, and
indirect manufacturing labor, $1,400.
f. Manufacturing overhead has been allocated at 110% of direct manufacturing labor costs through
December 31.
a. The total amount of materials requisitioned into work in process during December
b. The total amount of direct manufacturing labor recorded in work in process during December (Hint:
You have to solve requirements 2b and 2c simultaneously)
c. The total amount of manufacturing overhead recorded in work in process during December
d. Ending balance in work in process, December 31
e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing
overhead
3 Prenare closing inurnal entries related to manufacturing overhearl Assume that all under- or overal-
Transcribed Image Text:Questions 4-1 Does the applicability of job costing differ between a manufacturer of airplanes and a manufac- turer of steel constructions for housing? Explain. 4-2 If you have job costing on the one hand and process costing on the other, give some examples of companies that are in between. Can you put an emphasis on the one or the other? 4-38 Overview of general ledger relationships. Brandon Company uses normal costing in its job-costing system. The company produces custom bikes for toddlers. The beginning balances (December 1) and ending balances (as of December 30) in their inventory accounts are as follows: Beginning Balance 12/1 Materials Control Work-in-Process Control Manufacturing Department Overhead Control Finished Goods Control $2,100 6,700 - 1. Prepare journal entries for the December 31 payroll. 2. Use T-accounts to compute the following: 4,400 Ending Balance 12/31 $ 8,500 9,000 94,000 19,400 Additional information follows: a. Direct materials purchased during December were $66,300. b. Cost of goods manufactured for December was $234,000. c. No direct materials were returned to suppliers. d. No units were started or completed on December 31 and no direct materials were requisitioned on December 31. e. The manufacturing labor costs for the December 31 working day: direct manufacturing labor, $4,300, and indirect manufacturing labor, $1,400. f. Manufacturing overhead has been allocated at 110% of direct manufacturing labor costs through December 31. a. The total amount of materials requisitioned into work in process during December b. The total amount of direct manufacturing labor recorded in work in process during December (Hint: You have to solve requirements 2b and 2c simultaneously) c. The total amount of manufacturing overhead recorded in work in process during December d. Ending balance in work in process, December 31 e. Cost of goods sold for December before adjustments for under- or overallocated manufacturing overhead 3 Prenare closing inurnal entries related to manufacturing overhearl Assume that all under- or overal-
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