EX19-2.) The following information is available for the first month of operations of Korv Inc., a manufacturer and craft items:
Sales &n bsp; $775,000
Gross profit 265,000
Indirect labor &nbs p; 63,000
Indirect materials 32,000
Other factory overhead & nbsp; 17,500
Materials purchased & nbsp; 303,000
Total manufacturing cost for the period 620,000
Materials, end of period 35,000
Using the above information, determine the following missing amounts:
b.) Direct materials cost
c.) Direct labor cost
Ex19-4.) Materials issued for the current month are as follows:
Requisition No. Material Job No. Amount
811 ; Aluminum 511 $10,400
812 ; Steel 514 18,650
813 &n bsp; Plastic 526 875
814 &nb sp; Abrasives Indirect 325
815 Titanium Alloy 533 42,300
Journalize the entry to record the issuance of materials.
Ex19-7.) The weekly tickets indicate the following distribution of labor hours for three direct labor employees:
Job 111 Job 112 Job 113 Process Improvement
Johnny Daniels 18 & nbsp; 10 5 7
XXXXX XXXXX 7 &nbs p; 8 23 2
XXXXX XXXXX ; 8 12 16 4
The Direct labor rate earned by the three employees is as follows:
The process improvement category includes training, quality improvement, housekeeping, and other indirect tasks.
a.) Journalize the entry to record the factory labor costs for the week.
b.) assume that jobs 111 and 112 were completed but not sold during the week and that job 113 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements at the end of the week?
Ex19-8.) Chasse Homes Inc. manufactures mobile homes. Chase uses a job order cost system. The time tickets from October jobs are summarized below.
Job 502 $2,352
Job 503 1.440
Job 504 960
Job 505 1,320
Factory supervision 2,760
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $20 per direct labor hour. The direct labor rate is $12 per hour.
a.) Journalize the entry to record the factory labor costs.
b.) Journalize the entry to apply overhead to production for October.
Ex19-9.) Staten Island Turbine operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in factory 2. Estimated factory overhead costs, direct labor hours, and machine hours are as follows:
Factory 1 Factory 2
Estimated factory overhead cost for fiscal
year beginning May1 &n bsp; $236,800 $118,000
Estimated direct labor hours for year &nb sp; 9,100
Estimated machine hours for year 12,800
Actual factory overhead cost for May & nbsp; $23,200 $11,625
Actual direct labor hours for May 885
Actual Machine Hours for May 1,270
a.) Determine the factory overhead rate for factory 1.
b.) Determine the factory overhead rate for factory 2.
c.) Journalize the entries to apply factory overhead to production in each factory for May.
d.) Determine the balances of the factory accounts for each factory as of May 31, and indicate whether the amounts represent overapplied or underapplied factory overhead.
Ex19-12.) The following account appears in the ledger after only part of the postings have been completed for January.
Work In Progress
Balance January 1 $15,500
Direct Materials 86,200
Direct labor 64,300
Factory overhead 93,700
Jobs finished during January are summarized as follows:
Job 320 $57,600 Job 327 $26,100
Job 326 75,000 Job 350 94,800
a.) Journalize the entry to record the jobs completed.
b.) Determine the cost of the unfinished jobs at January 31.
Ex19-14.) The following events took place for Wreckin Ronnie Inc. during July 2008, the first month of operations as a producer of road bikes:
>Purchased $165,800 of Materials.
>Used $147,600 of direct materials in production.
>Incurred $96,250 of direct labor wages.
>Applied factory overhead at a rate of 80% of direct labor cost.
>Transferred $302,900 of work in process to finished goods.
>Sold goods with a cost of $301,300.
>Sold goods for $520,000.
>Incurred $119,000 of selling expenses.
>incurred $52,100 of administrative expenses.
a.) Prepare the July income statement for Wrekin Ronnie. Assume that Wrekin Ronnie uses the perpetual inventory method.
b.)Determine the inventory balances at the end of the first month of operations.
Pr19-2a.) Godwin Fixtures Co. uses a job order cost system. The following data summarize the operations related to production for April 2008, the first mouth of operations:
a. Materials purchased on account, $137,000.
b.) Materials requisitioned and factory labor used:
Job Materials Factory
No.601 $ 18,100 $17,000
&nbs p; No.602 20,000 25,500
No.603 & nbsp; 13,050 9,700
No.604 34,500 33,550
No.605 &nb sp; 15,700 14,800
No.606 &nbs p; 17,800 18,300
For general factory use 6,600 47,000
c.)Factory overhead cost incurred on account, $4,950.
b.)Depreciation of machinery and equipment, $3,700.
c.)The factory overhead rate is $53 per machine hour. Machine hours used:
Job Machine Hours
f.) Jobs completed: 601,602,603and 605.
g.) Jobs were shipped and customers were billed as fallows: Job 601,$72,750;Job 602,$88,780;Job 605,$74,500.
1.) Journalize the entries to record the summarized operations.
2.) Post the appropriate entries to t accounts for work in process and finished goods, using the identifying letters as dates. Insert memorandum account balances as of the end of the month.
3.) Prepare a schedule of unfinished jobs to support the balance in work in process account.
4.) Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.