REVEL for Horngren's Cost Accounting: A Managerial Emphasis -- Access Card (16th Edition) (What's New in Accounting)
16th Edition
ISBN: 9780134789705
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 4, Problem 4.43P
Overview of general ledger relationships. Estevez Company uses normal costing in its
| Beginning Balance 12/1 | Ending Balance 12/30 | |
| Materials Control | $ 4,200 | $ 17,000 |
| Work-in-Process Control | 13,400 | 18,000 |
| Manufacturing Department |
— | 188,000 |
| Finished Goods Control | 8,800 | 38,800 |
Additional information follows:
- a. Direct materials purchased during December were $132,600
- b. Cost of goods manufactured for December was $468,000.
- 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 $8,600, and indirect manufacturing labor, $2,800. - f. Manufacturing overhead has been allocated at 110% of direct manufacturing labor costs through December 31.
- 1. Prepare
journal entries for the December 31 payroll.
Required
- 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
- 3. Prepare closing journal entries related to manufacturing overhead. Assume that all under- or overallocated manufacturing overhead is closed directly to Cost of Goods Sold.
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Overview of general ledger relationships. Estevez Company uses normal costing in its job-costing system. The company produces kitchen cabinets. The beginning balances (December 1) and ending balances (as of December 30) in their inventory accounts are as follows:
Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account.
Telstar uses job order costing. The T-accounts below summarize its production activity for the year.
Raw Materials Inventory
Debit
Factory Wages Payable
Debit
Credit
Credit
46,900
Work in Process Inventory
Debit
Credit
26,150
9,900
26,150
87,650
104,584
Required 1
172,220
1. Compute the amount for each of the following.
a. Direct materials used
b. Indirect materials used
c. Direct labor used
d. Indirect labor used
e. Cost of goods manufactured
f. Cost of goods sold (before closing over- or underapplied overhead)
2. Compute the amount that overhead is overapplied or underapplied.
Required 2
127,900
Complete this question by entering your answers in the tabs below.
Finished Goods Inventory
Credit
Debit
172,220 155,190
Required 1 Required 2
87,650
42, 150
Compute the amount for each of the following.
a. Direct materials used
b. Indirect materials used
c. Direct labor used
d. Indirect labor used
e. Cost of goods manufactured
f. Cost of goods sold (before closing over- or underapplied…
Chapter 4 Solutions
REVEL for Horngren's Cost Accounting: A Managerial Emphasis -- Access Card (16th Edition) (What's New in Accounting)
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