🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeClass Notes1,200,000US530,000

ACCT 2101 Lecture Notes - Lecture 2: Subledger, Cost Driver, System 6

83 views5 pages
salmoncrow381
26 Oct 2016
School
LSU
Department
Accounting
Course
ACCT 2101
Professor
juliechenier

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Multiple choice: materials requisition forms are used for: Controlling the flows of materials from inventory into production. Recording the cost of raw materials in the accounting system: the basic formula for process costing is: Average unit cost=total manufacturing cost/total units produced: gaap requires: All manufacturing costs be charged to products. That manufacturing costs be treated as assets until sold: put the steps from the schedule of costs of good manufactured in the order in which they appear: (+) beginning wip inventory. =cost of goods manufactured (-) ending wip inventory: to calculate a predetermined overhead rate, divide estimated total manufacturing overhead by: Make a direct adjustment to costs of goods sold. Allocate to wip, finished goods, and cost of goods sold: based on the following information, calculate the predetermined overhead rate per direct hour. . 00 per direct labor hour: estimated total manufacturing overhead/estimated total cost driver (,000/2,500=, the major difference between job order and process costing is:

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

ACCT 2101 Chapter Notes - Chapter 2: Cost Driver, Indirect Costs, Expense
salmoncrow381
ACCT 2101 Chapter : Book Notes Accounting Test 1 Chapters 1,2,5
azuremammoth471
ACCT 2101 Chapter : Chapter 2 Notes 1
azuremammoth471

Related Questions

Identify each statement as true or false. If false, indicate howto correct the statement.

1. Process cost systems are used to apply costs to similarproducts that are mass-produced in a continuous fashion.
2. A process cost system is used when each finished unit isindistinguishable from another.
3. Companies that produce soft drinks, motion pictures, andcomputers chips would all use process cost accounting.
4. In a process cost system, costs are tracked by individualjobs.
5. Job order costing and process costing track differentmanufacturing costs elements.
6. Both job order costing and process costing account for directmaterials, direct labor, and manufacturing overhead.
7. Costs flow through the accounts in the same basic way for bothjob order costing and process costing.
8. In a process cost system, only one work in process account isused.
9. In a process cost system, costs are summarized in a job costsheet.
10. In a process cost system, the unit cost is total manufacturingcosts for the period divided by the units produced during theperiod.

I need to Prepare entries for a job order, cost system, and cost of goods manufactured schedule, but my numbers aren't matching up. Please answer both parts of the question.

Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.

P15-3A Prepare entries for a job order cost system and cost of goods manufactured schedule
Case Inc. is a construction company specializing in custom patios. The patios are constructed of
concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017,
the general ledger for Case Inc. contains the following data.
Raw Materials Inventory $4,200 Manufacturing Overhead Applied $32,640
Work in Process Inventory $5,540 Manufacturing Overhead Incurred $31,650
Subsidiary data for Work in Process Inventory on June 1 are as follows.
Job Cost Sheets
Customer Job
Cost Element Rodgers Stevens Linton
Direct materials $600 $800 $900
Direct labor 320 540 580
Manufacturing overhead 400 675 725
$1,320 $2,015 $2,205
During June, raw materials purchased on account were $4,900, and all wages were paid. Additional
overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred
on account.
A summary of materials requisition slips and time tickets for June show the following.
Customer Job Materials Requisition slips Time tickets
Rodgers $ 800 $850
Koss 2,000 800
Stevens 500 360
Linton 1,300 1,200
Rodgers 300 390
4,900 3,600
General use 1,500 1,200
$ 6,400 $4,800
Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for
customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18,900.
Each customer paid in full.
Instructions
(a) Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred,
and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to
production; and (3) completion of jobs and sale of goods.
(b) Post the entries to Work in Process Inventory.
(c ) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d) Prepare a cost of goods manufactured schedule for June.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a)(1) Journalize the June transactions for purchase of raw materials, factory labor costs incurred,
and manufacturing overhead costs incurred
Raw Malerials Inventory
Accounts Payable
Factory Labor
Cash
Manufacturing Overhead
Accumulated Depreciation- Equipment
Accounts Payable
(a)(2) Journalize the June transactions for assignment of direct materials, labor, and overhead to production
Work in Pricess Inventory
Manufacturing Overhead
Raw Malerials Inventory
Work in Pricess Inventory
Manufacturing Overhead
Factory Labor
Work in Pricess Inventory
Manufacturing Overhead
(a)(3) Journalize the June transactions for completion of jobs and sale of goods.
Finished Goods Inventory
Work in Process Inventory
Cash
Sales
Cost of Goods Sold
Finished Goods Inventory
(b) Post the entries to Work in Process Inventory.
Work in Process Inventory
6/1 Balance June Completed work
Direct Materials
Direct labor
Overhead applied
6/30 Balance
(c ) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
6/30 balance in Work in Process Inventory
Unfinished Job (Koss)
Direct materials
Direct labor
Manufacturing overhead
(d) Prepare a cost of goods manufactured schedule for June.
CASE INC.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
Work in process, June 1
Direct materials used
Direct labor
Manufacturing overhead applied
Total manufacturing costs
Total cost of work in process
Less: Work in process, June 30
Cost of goods manufactured
After you have completed P15-3A, consider the following additional question.
1. Assume that indirect labor and raw materials purchases changed to $1,400 and $6,800 respectively.
Also assume that overhead is applied at the rate of $1.50 per dollar of direct labor. The three
completed jobs were sold for $22,000 cash. Revise the journal entries to reflect these changes.

CompuFurn, Inc. manufactures furniture for computer workstations. CompuFurn uses a job-order costing system and employs absorption costing. ComuFurn’s work-in-process inventory on November 30 consisted of the following jobs:

JOB NUMBER DESCRIPTION UNIT ACCUMULATED COSTS
CC723 Computer Caddy 20,000 $900,000
CH291 Chair 15,000 $431,000
PS812 Printer Stand 25,000 $250,000
Total $1,581,000

On November 30, the company’s finished-goods inventory, which is evaluated using the first-in, first-out (FIFO) method, consisted of four items:

ITEM QUANTITY & UNIT COSTS ACCUMULATED COSTS

Computer Caddy
7,500 units @ $64 $480,000
Chair
19,400 units @ $35 each $679,000
Printer Stand 21,000 units @ $55 each $1,155,000
Desk 11,200 units @ $102 each $1,142,400
Total $3,456,400


At the end of November, the balance in CompuFurn’s Materials Inventory account, which includes both raw materials and purchased parts, was $668,000. Additions to and requisitions from the materials inventory during the month of December included the following:

ADDITIONS RAW MATERIALS PURCHASED PARTS
Purchases $242,000 $396,000
Requisitions:
Job CC723 $51,000 $104,000
Job CH291 $3,000 $10,800
Job PS812 $124,000 $87,000
Job DS444 (5,000 desks) $65,000 187,000


CompuFurn applies manufacturing overhead on the basis of machine hours. The company’s manufacturing overhead budget for the year totaled $4,500,000. The company planned to use 900,000 machine hours during this period, which is the firm’s estimated practical capacity. Through the first 11 months of the year, a total of 830,000 machine hours were used, and actual manufacturing overhead amounted to $4,140,000.

During the month of December, machine hours and labor hours consisted of the following:

ACCOUNT MACHINE HOURS LABOR HOURS COST
CC723 12,000 11,600 $122,400
CH291 4.400 3,600 $43,200
PS812 19,500 14,300 $200,500
DS444 14,000 12,500 $138,000
Indirect Labor --- 3,000 $29,400
Supervision --- --- $57,600
Total 49,900 45,000 $591,100


The jobs completed in December and the unit sales for that month are as follows:

JOB NO. PRODUCTION ITEMS QUANTITY COMPLETED ITEM QUANTITY SHIPPED
CC723 Computer Caddy 20,000 Computer Caddy 17,500
CH291 Chair 15,000 Chair 21,000
DS444 Desks 5,000 Printer Stand 18,000
Desks 6,000


REQUIRED:

1. Describe when it is appropriate for a company to use a job-order costing system.

2. Calculate the balance in CompuFurn, Inc.’s Work-in-Process Inventory account as of December 31.

3. Calculate the cost of the chairs in CompuFurn, Inc.’s finished-goods Inventory as of December 31.

4. Actual manufacturing overhead incurred in December amounted to $252,000. Calculate CompuFurn’s overapplied or underapplied overhead for the year.


5. Explain two alternative accounting treatments for overapplied or underapplied overhead balances when using a job-order costing system.