Thomas Carapaica

ID: 100832

7-18
a. Prepare journal entries to record the transactions.
1 Materials Invetory
Accounts Payable
2 Manufacturing Overhead
Materials Invetory
3 Materials Invetory
Accounts Payable
4 Accounts Payable
Cash
5 Work-in-Process - Direct Materials
Materials Invetory
6 Work-in-Process - Direct Labor
Wages Payable
7 Manufacturing Overhead Control
Cash
Work-in-Process - Manufacturing Overhead
8 ($20,000 x 125%)
Applied Manufacturing Overhead
9 Manufacturing Overhead Control

$ 16,000
$ 16,000
$

800
$

800

$ 11,200
$ 11,200
$ 16,000
$ 16,000
$ 13,600
$ 13,600
$ 20,000
$ 20,000
$ 21,200
$ 21,200
$ 25,000
$ 25,000
$ 10,000

Accumulated Depreciation - Property,

Plant and Equipment

$ 10,000

b. Prepare T-accounts to show the flow of costs during the period from Materials
Inventory through Cost of Goods Sold.
7-20
a. Prepare journal entries to record these transactions.
1 Materials Inventory
Accounts Payable
2 Work-In-Process - Direct Materials
Materials Inventory
3 Manufacturing Overhead Control
Materials Inventory
4 Accounts Payable
Cash
5 Materials Inventory

$ 17,000
$ 17,000
$ 16,800
$ 16,800
$

1,200
$

1,200

$ 17,000
$ 17,000
$

2,200

Work-In-Process - Direct Materials

6 Work-In-Process - Direct Labor
Cash
7 Manufacturing Overhead Control
Accounts Payable
8 Manufacturing Overhead Control
Accumulated Depreciation - Plant
9 Work-In-Process - Overhead (31,000 x 93%)
Applied Manufacturing Overhead

2,200

$ 31,000
$ 31,000
$ 17,200
$ 17,200
$ 35,000
$ 35,000
$ 28,830
$ 28,830

Predetermined Rate = $403,620 / $434,000 = 93%

b. Prepare T-accounts to show the flow of costs during the period from Materials
Inventory through Cost of Goods Sold

Materials Inventory
Balance 1/1

$ 11,400
1

$ 17,000

$ 16,800

Balance 1/31

2,200

1,200

$ 12,600

Work-In-Process Inventory
Balance 1/1

Balance 1/31

$ 15,070
2

$ 16,800

$ 31,000

$ 79,000

$ 28,830
$ 10,500

2,200

Transferred to Finished
Goods

Manufacturing Overhead
3

1,200

$ 17,200

$ 35,000

Applied Manufacturing Overhead

$ 28,830

Accounts Payable
4

$ 17,000

$ 17,000

$ 17,200

$ 17,000

$ 31,000

Cash

Accumulated Depreciation - Plant

$ 35,000

Finished Goods Inventory

Balance 1/1

2,600

Goods completed

$ 79,000

Balance 1/31

$ 74,500

Transfer to Cost of
Goods Sold

7,100

Cost of Goods Sold

Balance 1/31

$ 74,500

7-27
a. How much overhead was applied to each job in year 2?
Application rate: $625,000 Manufacturing Overhead $500,000 Direct Labor Costs
= 125% of Direct Labor
Job 2-1: $195,000 Direct Labor Costs x 125% = $243,750 Manufacturing Overhead
Job 2-2: $325,000 Direct Labor Costs x 125% = $406,250 Manufacturing Overhead
Job 2-3: $130,000 Direct Labor Costs x 125% = $162,500 Manufacturing Overhead
Manufacturing Overhead Applied = $812,500
b. What was the over- or underapplied manufacturing for year 2?
$825,000 - $812,500 = $12,500 Underapplied manufacturing Overhead
7-31
What was over- or underapplied manufacturing overhead in May?
Application rate: $210,000 / 35,000 hours = $6.00 per machine hour
Overhead applied = 38,500 hours x $6.00 = $231,000
Overhead incurred = $227,500
Overapplied overhead = $227,500 - $231,000 = $3,500
7-32
a. What are the costs of Jobs SY-400 and SY-403 at (1) the beginning of the
month and (2) when completed?

b. What is the cost of Job SY-404 at the end of the month?

c. How much was under- or overapplied service overhead for the month?
8-16
a. Compute the equivalent units for materials using the weighted-average
method.
b. Compute the equivalent units for conversion costs using the weightedaverage method.
8-17
a. Compute the equivalent units for materials using FIFO.
b. Compute the equivalent units for conversion costs using FIFO.
8-22
Compute the cost per equivalent unit for materials using the weighted-average
method.
8-23
Compute the cost per equivalent unit for materials using the FIFO method.
Aspen Company estimates its manufacturing overhead to be $625,000 and its direct
labor costs to be $500,000 for year 2. Aspen worked on three jobs for the year. Job
2-1, which was sold during the year 2