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WileyPLUS CSecure https://edugen.wileyplus.com/edugen/lti/main.uni Home Read, Study & Practice Gradebook ORION AssignmentOpen Assignment CALCULATOR PRINTER VERSIONBACK NEXT ASSIGNMENT RESOURCES Problem 14-02A a-d copy of HOMEWORK #6 For the year ended December 31, 2017, the job cost sheets of Concord Company contained the following data. CHAPTER 14 Job Number Direct Materials Direct Manufacturing Labor Total Costs Explanation Balance 1/1 Current year's costs Balance 1/1 Current year's costs Current year's costs Overhead $29,250 $28,080 35,100 42,120 12,870 21,060 50,310 56,160 67,860 64,350 $33,696 $91,026 50,544 127,764 25,272 59,202 67,392 173,862 77,220 209,430 7640 Review Result Objective Stu 7641 7642 Other data 1, Raw materials inventory totaled $17,550 on January 1. During the year, 163,800 of raw materials were purchased on account. Factory labor incurred was $183,690 2. Finished goods on January 1 consisted of Job No. 7638 for $101,790 and Job No. 7639 for $107,640 3. Job No. 7640 and Job No. 7641 were completed during the year 4. Job Nos. 7638, 7639, and 7641 were sold 5 Manufacturing overhead incurred on account totaled $140,400 6. Other manufacturing overhead consisted of indirect materials $16,380, indirect labor $21,060, and depreciation on factory machinery $9,360 (a) (1) Enter January 1 balances in Raw Materials Inventory, Work in Process Inventory, and Finished Goods Inventory (2) Record the 2017 transactions. (b) Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work (e) Record the adjustment for over- or underapplied manutacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold. Privacy PolicyI All Rights Reserved. A Division of Version 4.24.5.1 12:30 O

Explanation / Answer

a) 1)Raw materials Beginning bal= 17550

WIP Beginning bal=150228 (Job no 7640-91026 +Job no 7641-59202)

FG Beginning bal=209430 (Job no 7638-101790 and Job no 7639-107640)

a)2) Purchased RM -RM Inv-163800

Incurred Factory Labour- Factory Labour-183690

OH costs incurred-Manufacturing Overhead-140400

Indirect materials-Manufacturing OH-16380

Indirect Labour-Manufacturing OH-21060

Factory equipment dep-Manufacturing OH-9360

b) Work in Process a/c

Completed Jobs-451854

(Job 7640-Op bal-91026+cur yr-127764)+(Job 7641-Op bal-59202+Cur yr-173862)

Direct Materials - 153270

(Job no7640-35100+7641-50310+7642-67860)

  

This Balancing figure is matching with Unfinished Job no 7642 total costs 209430.

C) Manufacturing Overhead applied in 2017 is calculated as follows

Job no 7640-50544

Job no 7641-67392

Job no 7642-77220

Total=195156

Manufacturing overheads incurred are calculated as follows

On account -140400

Ind Materials - 16380

Ind Labour - 21060

Fac Machin Dep- 9360

Total- 187200

So this resulted in Over application of Overhead of $7956

Entry - Manufacturing Overhead a/c Dr 7956

To Cost of Goods Sold a/c 7956

Beginning Balance -150228

Completed Jobs-451854

(Job 7640-Op bal-91026+cur yr-127764)+(Job 7641-Op bal-59202+Cur yr-173862)

Direct Materials - 153270

(Job no7640-35100+7641-50310+7642-67860)

Balance c/d ( Balancing figure)-209430 Direct Labour-162630 (42120+56160+64350) Manufacturing OH- 195156 (50544+67392+77220) Total-661284 Total-661284

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