Part 2 Instructions for Part 2 (Chapter 15) (a) Set up the job cost sheets for J

Question

Part 2 Instructions for Part 2 (Chapter 15) (a) Set up the job cost sheets for Job No. J57 and Job No. K52. Determine the total cost for each manufacturing special order for these jobs. (Round unit cost to nearest cent.) (b) Journalize the activities from these job cost sheets in the general journal. Also, journalize the other costs that occurred during this period of time. (c) Assuming that Manufacturing Overhead has a credit balance of $3,600, determine whether overhead has been under/over applied and make the adjusting entry

Explanation / Answer

(b)

Predetermined overhead rate = $819456/2112 machine hours = $388 per machine hour

(c) Credit balance of $3600 in manufacturing overhead account implies that overhead has been over-applied to the extent of $3600.

Adjusting entry:

Date General Journal Debit Credit Dec. 1 Raw Materials 54200 Accounts payable 54200 (To record materials purchased on account) Dec. 2 Work in process-J57 ($4950 x 2/3) 3300 Work in process-K52 ($4950 x 1/3) 1650 Work in process-Other jobs 28000 Manufacturing overheads 3000 Raw Materials 35950 (To record raw materials requisitioned) Dec. 3 Work in process-J57 (6 x 2/3 x $15.50) 62 Work in process-K52 (6 x 1/3 x $15.50) 31 Salaries and wages expense 93 (To record direct labor cost) Dec. 3 Work in process-J57 (2.5 x $388) 970 Work in process-K52 (2 x $388) 776 Manufacturing overheads 1746 (To record manufacturing overhead assigned) Dec. 8 Work in process-J57 ($1200 x 2/3) 800 Work in process-K52 ($1200 x 1/3) 400 Raw Materials 1200 (To record raw materials requisitioned) Dec. 9 Work in process-J57 (6 x 2/3 x $15.50) 62 Work in process-K52 (6 x 1/3 x $15.50) 31 Salaries and wages expense 93 (To record direct labor cost) Dec. 9 Work in process-J57 (3 x $388) 1164 Work in process-K52 (2 x $388) 776 Manufacturing overheads 1940 (To record manufacturing overhead assigned) Dec. 12 Salaries and wages expense 75000 Cash 75000 (To record salaries and wages paid) Dec. 13 Manufacturing overheads 9500 Cash 9500 (To record payment of factory water bill) Dec. 14 Work in process-J57 ($3300 x 2/3) 2200 Work in process-K52 ($3300 x 1/3) 1100 Raw Materials 3300 (To record raw materials requisitioned) Dec. 15 Work in process-J57 (6 x 2/3 x $15.50) 62 Work in process-K52 (6 x 1/3 x $15.50) 31 Salaries and wages expense 93 (To record direct labor cost) Dec. 15 Work in process-J57 (3 x $388) 1164 Work in process-K52 (2 x $388) 776 Manufacturing overheads 1940 (To record manufacturing overhead assigned) Dec. 15 Finished goods 15355 Work in process-J57 9784 Work in process-K52 5571 (To record cost of jobs completed and transferred) Dec. 18 Finished goods 25000 Work in process-Other jobs 25000 (To record cost of jobs completed and transferred) Dec. 21 Manufacturing overheads 17000 Cash 17000 (To record payment of factory electric bill)

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