1. Explanation a. To record purchase of raw materials. Date Account Title and Explanation Post ref Debit ($) Credit ($) Work in process 9,500 Direct material 9,500 (To record raw materials used in production) Table (1) Work in process is an asset. This account increases as the cost is directly related to production, its value increases. Hence it is debited. Direct material is an expense account. The account is directly related to production, hence it is credited. b. To record factory wages. Date Account Title and Explanation Post ref Debit ($) Credit ($) Work in process 8,000 Direct Labor 8,000 (To record direct labor used in production) Table (2) Work in process is an asset. This account increases as the cost of the labor is directly related to production, its value increases. Hence it is debited. Direct labor is an expense account. The account is directly related to production, hence it is credited and cost is allocated to work in process. c. To record the entry for overhead applied. Date Account Title and Explanation Post ref Debit ($) Credit ($) Work in process 6,400 Overhead 6,400 (To record overhead used in production) Table (3) Work in process is an asset. This account increases as the cost of the overhead is directly related to production, its value increases. Hence it is debited. Overhead is an expense account. The account is directly related to production, hence it is credited and cost is allocated to work in process. Working note: Given, Direct labor cost is $8,000. Overhead rate is 80%. Computation of overhead, Overhead = Direct labor × Overhead rate = $ 8 , 000 × 80 % = $ 6 , 400 Overhead is $6,400. d. To record sale of job 120. Date Account Title and Explanation Post ref Debit ($) Credit ($) Accounts Receivable 22,000 Sales Revenue 22,000 (To record sale of job 120) Table (4) Accounts receivable is an asset 2. To determine To compute : The balance of work in process and finished goods inventory.

GEN COMBO LOOSELEAF FINANCIAL AND MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD

7th Edition

ISBN: 9781260088694

Author: John J Wild

Publisher: McGraw-Hill Education

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Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…

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Chapter 15, Problem 5E

To determine

To prepare: Journal Entries.

To determine

To compute: The balance of work in process and finished goods inventory.

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Chapter 15, Problem 4E

Chapter 15, Problem 6E

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Chapter 15 Solutions

GEN COMBO LOOSELEAF FINANCIAL AND MANAGERIAL ACCOUNTING; CONNECT ACCESS CARD

Ch. 15 - Prob. 1MCQ Ch. 15 - A company uses direct labor costs to apply...Ch. 15 - Prob. 3MCQ Ch. 15 - Prob. 4MCQ Ch. 15 - Prob. 5MCQ Ch. 15 - Prob. 1DQ Ch. 15 - Some companies use labor cost to apply factory...Ch. 15 - Prob. 3DQ Ch. 15 - Prob. 4DQ Ch. 15 - Prob. 5DQ

Ch. 15 - Prob. 6DQ Ch. 15 - GOOGLE Google uses a “time ticket” for some...Ch. 15 - What events cause debits to be recorded in the...Ch. 15 - GOOGLE Google applies overhead to product costs....Ch. 15 - Prob. 10DQ Ch. 15 - 11. Why must a company use predetermined...Ch. 15 - Prob. 12DQ Ch. 15 - Prob. 13DQ Ch. 15 - Prob. 14DQ Ch. 15 - Prob. 1QS Ch. 15 - Prob. 2QS Ch. 15 - Prob. 3QS Ch. 15 - Prob. 4QS Ch. 15 - Prob. 5QS Ch. 15 - Prob. 6QS Ch. 15 - Prob. 7QS Ch. 15 - Prob. 8QS Ch. 15 - Prob. 9QS Ch. 15 - Prob. 10QS Ch. 15 - Prob. 11QS Ch. 15 - Prob. 12QS Ch. 15 - Prob. 13QS Ch. 15 - Prob. 14QS Ch. 15 - Job order productions C1 Refer to this chapter’s...Ch. 15 - Prob. 1E Ch. 15 - Prob. 2E Ch. 15 - Exercise 15-13 Analysis of cost flows C2 As of the...Ch. 15 - Prob. 4E Ch. 15 - Prob. 5E Ch. 15 - Prob. 6E Ch. 15 - Exercise 15-7 Cost flows in a job order costing...Ch. 15 - Prob. 8E Ch. 15 - Prob. 9E Ch. 15 - Prob. 10E Ch. 15 - Prob. 11E Ch. 15 - Prob. 12E Ch. 15 - Prob. 13E Ch. 15 - Prob. 14E Ch. 15 - Prob. 15E Ch. 15 - Prob. 16E Ch. 15 - Prob. 17E Ch. 15 - Prob. 18E Ch. 15 - Prob. 19E Ch. 15 - Prob. 20E Ch. 15 - Prob. 1PSA Ch. 15 - Prob. 2PSA Ch. 15 - Prob. 3PSA Ch. 15 - Prob. 4PSA Ch. 15 - Prob. 5PSA Ch. 15 - Prob. 1PSB Ch. 15 - Prob. 2PSB Ch. 15 - Prob. 3PSB Ch. 15 - Prob. 4PSB Ch. 15 - Prob. 5PSB Ch. 15 - SERIAL PROBLEM Business Solutions P1 P2 P3 (This...Ch. 15 - Prob. 1GLP Ch. 15 - REPORTING IN ACTION P1 APPLE BTN 15-1 Manufactures...Ch. 15 - Prob. 2BTN Ch. 15 - ETHICS CHALLENGE P3 BIN 15-3 Assume that your...Ch. 15 - COMMUNICATING IN PRACTICE C1 C2 BTN 15-4 Assume...Ch. 15 - Prob. 5BTN Ch. 15 - Prob. 6BTN Ch. 15 - Prob. 7BTN Ch. 15 - Prob. 8BTN Ch. 15 - Prob. 9BTN

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