Connect Access Card For Fundamental Accounting Principles
24th Edition
ISBN: 9781260158526
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 19, Problem 5BPSB
Problem 19-5B
Production transactions, subsidiary records, and source documents
P1 P2 P3 P4
King Company produces variations of its product, a megaton, in response to custom orders from its customers, On June 1, the company had no inventories of work in process or finished goods but held the following raw materials.
On June 3, the company began working on two megatons: Job 450 for Encinita Company and Job 451 for Fargo, Inc.
Required
Using Exhibit 19.3 as a guide, prepare
a. Purchased raw materials on credit and recorded the following information from receiving reports and invoices.
Instructions: Record these purchases with a single
b. Requisitioned the following raw materials for production.
Instructions: Enter amounts for direct materials requisitions on the materials ledger cards and the job cost sheets. Enter the indirect materials amount on the materials ledger card. Do not record a journal entry at this time.
c. Received the following employee time tickets for work in June.
Instructions: Record direct labor from the time tickets on the job cost sheets. Do not record a journal entry at this time.
d. Paid cash for the Mowing items during the month: factory payroll, $84,000, and miscellaneous
Instructions: Record these payments with journal entries.
e. Finished Job 450 and transferred it to the warehouse. The company assigns overhead to each job with a predetermined overhead rate equal to 70% of direct labor cost.
Instructions: Enter the applied overhead on the cost sheet for Job 450, fill in the cost summary section of the cost sheet, and then mark the cost sheet "Finished." Prepare a journal entry to record the job's completion and its transfer to Finished Goods. f. Delivered Job 450 and accepted the customer's promise to pay $290,000 within 30 days,
Instructions: Prepare journal entries to record the sale of Job 450 and the cost of goods sold, g. Applied overhead cost to Job 451 based on the job's direct labor used to date,
Instructions: Enter overhead on the job cost sheet but do not mate a journal entry at tins time. h. Recorded the total direct and indirect materials costs as reported on all the requisitions for the month.
Instructions: Prepare a journal entry to record these. i. Recorded the total overhead costs applied to jobs. Instructions: Prepare a journal entry to record the allocation of these overhead costs. j. Compute the balance in the Factory Overhead account as of the end of June.
Check (h) Dr. Work in Process Inventory, $38,400
(j) Balance in Factory Overhead, $736 Cr., overapplied
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QUESTION 2
A company manufacture it main product in two different consecutive processes, process 1 and process 2. The output from process 1 is transferred to process 2 the output of process 2 is sent to the packaging department. Information for the week ended 31 August 2009 is as follows;
Process 1
Input Material X 18,00kg @ GH¢1 per kg
Material Y 12,000 kg @ GH¢2 per kg
Labour 1,720 hours @ GH¢3 per hour
Normal loss 5% of input
Sales price of scrap GH¢0.32 per kg
Output 27,000 kg
There was no opening stock but 600 kg of closing work in progress in process 1 at the end of the week which is estimated to be 60% complete with regard to conversion cost.
Process 2
Input Material P 19,800 kg @ GH¢2.5 per kg
Material Y 12,600 kg @ GH¢1.5 per kg
Additives GH¢1,800
Labour 1,480 hours @ GH¢3 per hour
Normal loss 5% of input
Output 56,000 kg
There was no opening WIP but there 3,000 kg in process 2 at the end of the week which is estimated to be 50% complete with…
Unit v question 15
Chapter 19 Solutions
Connect Access Card For Fundamental Accounting Principles
Ch. 19 - Prob. 1DQCh. 19 - Some companies use labor cost to apply factory...Ch. 19 - Prob. 3DQCh. 19 - In a job order costing system, what records serve...Ch. 19 - What journal entry is recorded when a materials...Ch. 19 - Prob. 6DQCh. 19 - Google uses a "time ticket" for some employees....Ch. 19 - What events cause debits to be recorded in the...Ch. 19 - Prob. 9DQCh. 19 - Assume that Apple produces a batch of 1,000...
Ch. 19 - 11. Why must a company use predetermined overhead...Ch. 19 - How would a hospital apply job order costing?...Ch. 19 - Harley-Davidson manufactures 30 custom-made,...Ch. 19 - Prob. 14DQCh. 19 - Jobs and job lots C1 Determine which of the...Ch. 19 - Job cost sheets C2 Clemens Cars's job cost sheet...Ch. 19 - Documents in job order costing P1 P2 P3 The left...Ch. 19 - Raw materials journal entries P1 During the...Ch. 19 - Prob. 5QSCh. 19 - Prob. 6QSCh. 19 - Prob. 7QSCh. 19 - Prob. 8QSCh. 19 - Prob. 9QSCh. 19 - Prob. 10QSCh. 19 - Prob. 11QSCh. 19 - Prob. 12QSCh. 19 - Jab order costing of services A1 An advertising...Ch. 19 - Job order costing of services A1 An advertising...Ch. 19 - Job cost sheet C2 Eco Skate makes skateboards from...Ch. 19 - Exercise 19-1 Job order production C1 Match each...Ch. 19 - Exercise 19-2 Job cost computation C2 The...Ch. 19 - Exercise 19-3 Analysis of cost flows C2 As of the...Ch. 19 - Exercise 19-4 Recording product costs P1 P2 P3...Ch. 19 - Exercise 19-5 Manufacturing cost flows P1 P2 P3...Ch. 19 - Exercise 19-6 Recording events in job order...Ch. 19 - Exercise 19-7 Cost flows in a jab order costing...Ch. 19 - Exercise 19-8 Journal entries for materials P1 Use...Ch. 19 - Exercise 19-9 Journal entries for labor P2 Use...Ch. 19 - Exercise 19-10 Journal entries for overhead P3 Use...Ch. 19 - Exercise 19-11 Overhead rate; costs assigned to...Ch. 19 - Exercise 19-12 Analyzing costs assigned to work in...Ch. 19 - Exercise 19-13 Adjusting factory overhead P4 Refer...Ch. 19 - Exercise 19-14 Adjusting factory overhead P4...Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Exercise 19-17 Overhead rate calculation,...Ch. 19 - Exercise 19-18 Job order costing for services A1...Ch. 19 - Exercise 19-19 Job order costing of services A1...Ch. 19 - Exercise 19-20 Direct materials journal entries P1...Ch. 19 - Problem 19-1A Production costs computed and...Ch. 19 - Problem 19-2 A Source documents, journal entries,...Ch. 19 - Prob. 3APSACh. 19 - Prob. 4APSACh. 19 - Problem 19-5A Production transactions, subsidiary...Ch. 19 - Problem 19-1B Production costs computed and...Ch. 19 - Prob. 2BPSBCh. 19 - Prob. 3BPSBCh. 19 - Problem 19-4B Overhead allocation and adjustment...Ch. 19 - Problem 19-5B Production transactions, subsidiary...Ch. 19 - The computer workstation furniture manufacturing...Ch. 19 - The General Ledger tool in Connect automates...Ch. 19 - Manufacturers and merchandisers can apply...Ch. 19 - Prob. 2AACh. 19 - Apple and Samsung compete in the global...Ch. 19 - Assume that your company sells portable housing to...Ch. 19 - Assume that you are preparing for a second...Ch. 19 - Prob. 3BTNCh. 19 - Consider the activities undertaken by a medical...Ch. 19 - Refer to the chapter opener regarding Brennan...Ch. 19 - Prob. 6BTN
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