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Acccob3 HW3

Here are the journal entries to record the transactions: 1. a. Raw materials Accounts payable 325,000 325,000 2. b. Work in process Manufacturing overhead 58,000 Raw materials 232,000 290,000 3. c. Work in process Manufacturing overhead 120,000 Wages and salaries payable 60,000 180,000 4. d. Manufacturing overhead Accumulated depreciation 75,000 75,000 5. e. Manufacturing overhead Accounts payable 62,000 62,000 6. f. Work in process Manufacturing overhead

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556 views

Acccob3 HW3

Here are the journal entries to record the transactions: 1. a. Raw materials Accounts payable 325,000 325,000 2. b. Work in process Manufacturing overhead 58,000 Raw materials 232,000 290,000 3. c. Work in process Manufacturing overhead 120,000 Wages and salaries payable 60,000 180,000 4. d. Manufacturing overhead Accumulated depreciation 75,000 75,000 5. e. Manufacturing overhead Accounts payable 62,000 62,000 6. f. Work in process Manufacturing overhead

Uploaded by

Reshawn Kimi Santos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1

Primare Corporation
Schedule of Cost of Goods Manufactured
Beginning work in process inventory
Direct Materials:
Beginning raw materials inventory
Add: Purchases of raw materials
Total raw materials available
Less: Ending raw materials inventory
Raw materials used in production
Less: Indirect materials used in production
Direct Materials used in production
Direct labor
Manufacturing overhead
Total manufacturing costs added to production
Total manufacturing costs to account for
Less: Ending work in process inventory
Cost of goods manufactured
2

orporation Beginning finished good


Goods Manufactured Add: Cost of goods man
$ 56,000 Cost of goods available
Less: Ending finished g
$12,000 Unadjusted cost of good
30,000 Add: Underapplied over
42,000 Adjusted cost of goods
18,000
24,000
d in production 5,000
$ 19,000
58,000
87,000
164,000
220,000
$ 65,000
155,000
Primare Corporation
Schedule of Cost of Goods Sold
ginning finished goods inventory $35,000
dd: Cost of goods manufactured 155,000
ost of goods available for sale 190,000
ss: Ending finished goods inventory 42,000
nadjusted cost of goods sold 148,000
dd: Underapplied overhead 4,000
djusted cost of goods sold $152,000
1
Given:
Estimate direct labor-hours 80,000
Fixed overhead cost 680,000
Variable overhead cost (b) $ 0.50/DLH

Formula predetermined overhead rate = Estimated Total


Manufacturing OH cost/ Estimated total units

y = a + bx
y= 680,000 + (0.50/hour)(80,000)
Estimated overhead rate 720,000
Estimate direct labor-hours 80,000
Predetermined overhead rate $ 9/DLH
2
Total MFG. Cost = Direct Materials (DM) + Direct Labor Cost (DLC) + Overhead cost (OH)

Direct Matrials
Direct Labor Cost
Overhead Cost (9 x 280)
Total Manufacturing Cost
rhead cost (OH)

$ 38,000
21,000
2,520
$ 61,520
1 Identify reasons for entries (a) through (d).

Entry Reason
(a) Actual manufacturing overhead costs incurred for the year.
(b) Overhead cost applied to Work in Process for the year.
(c) Cost of goods manufactured for the year.
(d) Cost of goods sold for the year.

2 No Event General Journal Debit


1 a. Cost of goods sold 70,000
Manufacturing overhead

3 No Event General Journal Debit


1a Work in process 3,500
Finished goods 10,500
Cost of goods sold 56,000
Manufacturing overhead
Credit

70,000

Credit

70,000
E3-10

1 No Transaction General Journal


1 a. Raw materials
Accounts payable

2 b. Work in process
Manufacturing overhead
Raw materials

3 c. Work in process
Manufacturing overhead
Wages and salaries payable

4 d. Manufacturing overhead
Accumulated depreciation

5 e. Manufacturing overhead
Accounts payable

6 f. Work in process
Manufacturing overhead

2 Manufacturing Overhead
Debit Credit
b 58,000 300,000 f
d 75,000
e 62,000
c 120,000

Ending balance 15,000

3 No Transaction General Journal


1g Finished goods
Work in process

4 Total product cost $ 592,000


Number of units 16,000
Unit product cost $ 37.00
Number of units sold 10,000
Portion of job cost
included in cost of $ 370,000.00
goods sold
neral Journal Debit Credit
325,000
325,000

232,000
58,000
290,000

60,000
120,000
180,000

75,000
75,000

62,000
62,000

300,000
300,000

Work in Process
Debit Credit
b 232,000
c 300,000
f 60,000

Ending balance 592,000

neral Journal Debit Credit


592,000
592,000

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