Student Name:Class:

Problem 07-43A

DUNGAN CABINETRY

Requirement a:1. Purchased $53,700 in materials on account.

Acc #Materials Inventory 53,700 Accounts Payable 53,700 «- Correct!

2. Issued $1,500 in supplies from the materials inventory to the production department.Acc #

Manufacturing Overhead Control 1,500 Materials Inventory 1,500 «- Correct!

3. Paid for the materials purchased in (1)Acc #

Accounts Payable 53,700 Cash 53,700 «- Correct!

4. Issued $25,500 in direct materials to the production department.Acc #

Work-In-Process 25,500 Materials Inventory 25,500 «- Correct!

5. Incurred wage costs of $42,000, which were debited to payroll, a temporary account. Of thisamount, $13,500 was withheld for payroll taxes and credited to payroll taxes payable. The remaining 28,500 was paid to the employees. See transactions (6) and (7) for additionalinformation about payroll.

Acc #Payroll 42,000 «- Correct!

Cash 28,500 Payroll Taxes Payable 13,500

6. Recognized $21,000 in fringe benefit costs, incurred as a result of the wages paid in (5).This $21,000 was debited to Payroll and credited to Fringe Benefits Payable.

Acc #Payroll 21,000 Fringe Benefits Payable 21,000 «- Correct!

7. Analyzed the Payroll account and determined that 60 percent represented direct labor;30 percent, indirect manufacturing labor, and 10 percent, administrative and marketing costs.For this entry you will need to compute the amounts debited and credited.

Acc #Manufacturing Overhead 37,800 Manufacturing Overhead Control 18,900 Administrative and Marketing Costs 6,300 Payroll 63,000 «- Correct!

8. Paid for utilities, power, equipment maintenance, and other miscellaneous items for themanufacturing plant totaling $32,400.

Acc #Manufacturing Overhead Control 32,400 Cash 32,400 «- Correct!

9. Applied overhead on the basis of 175 percent of direct labor costs.For this entry you will need to compute the amounts debited and credited.

Acc #Applied Manufacturing Overhead 66,150 Manufacturing Overhead Control 66,150 «- Correct!

10. Recognized depreciation of $17,250 on manufacturing property, plant, and equipment.Acc #

Manufacturing Overhead Control 17,250 Accumulated Depreciation 17,250 «- Correct!

Given Data P07-43:

DUNGAN CABINETRY

January transactions: 1. Purchased materials on account. $ 53,700 2. Issued supplies from materials inventory to production department. $ 1,500 3. Paid for materials purchased in (1). 4. Issued direct materials to production department. $ 25,500 5. Incurred wage costs:

Paid in cash to employees $ 28,500 Withheld for payroll taxes $ 13,500

6. Recognized fringe benefit costs as a result of payroll in (5). $ 21,000 7. Analysis of payroll costs incurred in (5):

Percentage represented by direct labor. 60% Percentage represented by indirect manufacturing labor. 30% Percentage represented by administrative and marketing. 10%

8. Paid for utilities, power, equipment maintenance, and other misc. items for manufacturing plant. $ 32,400

9. Percent of overhead applied based on direct labor costs. 175%10. Recognized depreciation on manufacturing property, plant, and equipment. $ 17,250

Account Balances:Beginning Ending

Materials Inventory $ 88,857 $ - Work-In=Process Inventory 12,375 - Finished Goods Inventory 62,250 49,800 Cost of Goods Sold - 98,775

Student Name:Class:

Problem 07-46A

TOLEDO FARM IMPLEMENTS

This problem is arranged so that Work-in-Process it can be solved one step at a (a) Beginning balance Transferred out (d) time. The T account for Work- (b) Direct materials Disaster loss (f) in-Process to the right shows (c) Direct labor you what information you need (e) Overhead applied to solve the problem. Some of Ending balance the information is given in the problem. Most of the information Work-in-Process you will need to compute, and those parts are identified with the letters a thru e. After you have successfully computed each item, put your answers in the second Work-in-Process T Account to find out if you are correct.

This is a challenging problem. To keep it challenging you will need to set up your own computations for the missing data. Only the final items in the Work-in-Process T account above will be identified as correct or incorrect.

Step b. To compute the direct materials added to work-in-process, you will first have to compute materials purchased. Compute purchases in the shaded area below.

Ending balance in Accounts Payable Cash payment during May subtotal less beginning balance Purchases

Compute direct materials added to production in the space below.

Beginning materials inventory purchases subtotal less: Ending Inventory Indirect materials Direct materials used

Step c. Computation of Direct Labor

Payroll Less Indirect Labor Direct Labor

Step d. Computation of amount transferred out of Work-in-Process.

Ending balance of Finished Goods Plus Cost of Goods Sold during May: Balance at the end of May Balance at the beginning of May subtotal Less Beginning balance of Finished Goods Amount transferred to Finished Goods from Work-in-Process

Step e. Computation of Overapplied Applied during May

Ending balance in Manufacturing Overhead Less beginning balance in Manufacturing Overhead subtotal Add overapplied overhead Overhead applied during May

Step f. Computation of the loss from the Tornado

Debits to the Work-in-Process account: Beginning balance Materials added Labor added Overhead added Total debits Less goods transferred out Total loss from the Tornado

Given Data P07-46:

TOLEDO FARM IMPLEMENTS

Information from April financial statements: Materials inventory, April 30 $ 98,000 Work-in-process inventory, April 30 172,400 Finished goods inventory, April 30 64,000 Cost of goods sold through April 30 697,200 Accounts payable ( materials suppliers), April 30 43,200 Manufacturing overhead through April 30 369,800 Payroll payable, April 30 - Withholding and other payroll liabilities, April 30 19,400 Overhead applied through April 30 359,200

Inventories on hand May 31: Materials inventory $ 86,000 Work-in-process inventory ? Finished goods inventory 75,000

Available balances at end of May: Manufacturing overhead through May 31 $ 434,000 Cost of goods sold through May 31 793,200

Additional Information:Outstanding bills to suppliers $ 100,200 Cash payments to suppliers during the month 75,800 Manufacturing section payroll costs last month 164,800 Indirect labor portion of payroll costs 29,400 Indirect materials (from scrap of paper under desk) 4,172 Amount of overhead overapplied during the month 2,400

Student Name:Class:

Problem 07-48A

CHELSEA HOUSEHOLD RENOVATIONS

Use the T accounts provided to determine the information needed for the management report.

Cash or Accounts Payable Actual overhead costs for June $ 40,000

Correct!

Wages Payable Actual overhead costs for June $ 64,000

Correct!

Overhead Actual Applied

Actual overhead costs for June $ 40,000 $ 32,000 Correct! Correct!

Work-in-Process - Job 61 Direct Materials $ 4,000 Direct Labor 19,200 Manufacturing Overhead 9,600

32,800 Labor added in June 19,200 Overhead added in June 9,600 Total cost of goods sold Job 61 61,600 Transferred to cost of goods sold $ 61,600 Final Balance $ - Correct!

Correct!

Work-in-Process - Job 62 Materials added in June $ 6,000 Labor added in June 24,000 Overhead added in June 12,000 Total cost of goods sold Job 62 42,000 Transferred to cost of goods sold $ 42,000 Final Balance $ - Correct!

Correct!

Work-in-Process - Job 63 Materials added in June $ 3,200 Labor added in June 20,800 Overhead added in June 10,400 Final Balance $ 34,400

Correct!

Cost of Goods Sold Job 61 $ 61,600 Job 62 42,000 Total for June $ 103,600

Correct!

Underapplied Overhead $ 8,000

Correct!

If you need space to make computations, the yellow area below is unprotected.

Given Data P07-48:

CHELSEA HOUSEHOLD RENOVATIONS

Information for June: Completed Job 61 Started and completed Job 62 Started Job 63

Work-in-process inventory (excluding applied overhead): May 31: Job 61 Direct materials $ 4,000 Labor (960 hours X $20) $ 19,200 June 30: Job 63 Direct materials $ 3,200 Labor (1040 hours X $20) $ 20,800

Percentage each job complete as to labor-hours 50%

May 31 Direct materials inventories $ - Finished goods inventories $ - June 30 Direct materials inventories $ - Finished goods inventories $ -

Actual overhead $ 40,000

Cost of goods sold (before adjustment for over- or underapplied overhead) Job 61 Materials $ 4,000 Labor ? Overhead ? Job 62 Materials ? Labor ? Overhead ?

Direct materials purchased in June $ 64,000