1.

)
T-Accounts

Raw Materials
Beg Bal 19,000 78,000 (2)
(1) 67,000
End Bal 8,000

Work in Process
Beg Bal 33,000 255,000 (6)
(2) 78,000
(3) 77,000
(5) 71,000
End Bal 4,000

Finished Goods
Beg Bal 52,000 294,000 (8)
(6) 255,000
End Bal 13,000

Manufacturing Overhead
(4) 64,000 71,000 (5)
7,000 Over applied

Cost of Goods Sold

(8) 294,000 7,000 Over applied
End Bal 287,000

2.) RBO Corporation

Schedule for Cost of Goods Manufactured
For the month ended November 30

Beginning balance of Workin Process Inventory, 11/1

Manufacturing costs for the period
Raw material (all direct)
Beginning balance $25,000
Purchase of material 72,000
Raw material available for use 97,000
Ending balance (21,000)
Total direct materials used $76,000
Direct labor 92,000
Manufacturing overhead 42,000
Total manufacturing cost
Total cost to account for
Ending balance of Work in Process Inventory, 11/30
Cost of Goods Manufacrured
 RBO Corporation
Schedule of Cost of Goods Sold
For the month ended November 30

Beginning balance of Finished Goods Inventory

Cost of goods manufactured
Cost of goods available for sale
Ending balance of Finished Goods Inventory, 11/30
Cost of goods sold

3.)
a.
Direct Materials, Beg 20,000
Purchased 110,000
Direct Materials, End -26,000
Material Used 104,000

b.
Manufacturing Overhead
Actual 78,000 80,000 Applied
2,000 Over applied

c.
Mathew Company
Schedule for Cost of Goods Manufactured
For the month ended March 31

Beginning balance of Workin Process Inventory, 3/1

Manufacturing costs for the period
Raw material (all direct)
Beginning balance $20,000
Purchase of material 110,000
Raw material available for use 130,000
Ending balance (26,000)
Total direct materials used $104,000
Direct labor 160,000
Manufacturing overhead 78,000
Total manufacturing cost
Total cost to account for
Ending balance of Work in Process Inventory, 3/31
Cost of Goods Manufacrured

4.)
a. Raw Materials 2,250
Accounts Payable 2,250
To record cost of raw material purchased on account
b. Work in Process Inventory 2,618
Manufacturing Overhead 266
Salaries and Wages Payable 2,884
To accrue factory wages for direct and indirect labor

c. Work in Process Inventory 1,875

Manufacturing Overhead 224
Raw Materials 2,099
To record direct and indirect raw materials transferred to production

d. Manufacturing Overhead 380

Accumulated Depreciation - Factory Equip 380
To record depreciation on the factory equipment for the period

e. Manufacturing Overhead 1,775

Salaries and Wages Payable 1,775
To accrue plant superintendent's salary

f. Manufacturing Overhead 2,016

Accounts Payable 2,016
To record inderect cost

g. Work in Process Inventory 2,992

Manufacturing
To record Overhead
the assignment of actual overhead costs 2,992
to WIP
Inventory

h. Finished Goods Inventory 6,023

Work inthe
To record Process Inventory
transfer 6,023
of work completed during the
period

i. Accounts Receivable 12,701

Sales 12,701
To record sales on account

j. Cost of Goods Sold 8,090

Finished Goods Inventory 8,090
To record cost of goods sold for the period
5.)
a. Predetermine Overhead Rate 18

Applied OH 1,350,000
Actual OH 1,687,500
Underapplied of - 337,500

b.
Balance: Proportion:
WIP 337,500 0.25
FGI 253,125 0.19
COGS 759,375 0.56
Total 1,350,000
 Under applied Adjusted amount
WIP 337,500 x 0.25 84,375
FGI 337,500 x 0.19 63,281
COGS 337,500 x 0.56 189,844
ured
0

$17,000

210,000
$227,000
(10,000)
$217,000
0

$48,000
217,000
$265,000
(56,000)
$209,000

ured

$40,000

342,000
$382,000
(36,000)
$346,000
6.)
Beginning Balance of Job SL-205 34,350
Charges to Job SL-205
DM 71,800
DL 32,175
OH (Applied) 54,000
Ending Balance of Job SL-205 192,325

Predetermined OH Rate 20

7.)
a. Predetermined OH Rate - Depart A 6.0
Predetermined OH Rate - Depart B 2.5

b. OH Applied to Job 243:

Department A 1,500
Department B 2,750

c. Dep A Dep B
Manufacturing Overhead Incurred 385,000 705,000
Applied OH Cost: 366,000 710,000
Under/Over Applied Overhead 19,000 - 5,000
Over Under
8.)
1. Flour mill Process
2. Dairy farm Process
3. Electric utility Process
4. Custom boat builder Job Costing
5. Management consulting firm Job Costing
6. Aluminum refiner that makes aluminumProcess

9.)
1 Work in Process - Mixing Dept 38,900
Raw Materials 38,900
To record raw material transferred to production

2 Work in Process - Mixing Dept 16,100

Salaries and Wages Payable 16,100
To accrue direct labor

3 Work in Process - Mixing Dept 45,700

To record the assignment of applied overhead costs to45,700
Manufacturing Overhead WIP
Inventory

4 Work in Process - Drying Dept 87,600

Work in Process - Mixing Dept 87,600
To record tranferred of goods to other department
 5 Finished Goods Inventory 111,300
To Work
recordinthe
Process- Drying
transfer Dept
of work completed during the111,300
period

6 Cost of Goods Sold 98,200

Finished Goods Inventory 98,200
To record cost of goods sold for the period

10.)
1 Work in Process Inventory - Assembly 24,500
Raw Materials 24,500
To record raw material transferred to production

2 Work in Process Inventory - Assembly 29,000

Salaries and Wages Payable 29,000
To accrue factory wages for direct and indirect labor

3 Work in Process Inventory - Assembly 58,900

To record the assignment of applied overhead costs to58,900
Manufacturing Overhead WIP
Inventory

4 Work in Process Inventory - Painting De 101,200

Work in Process Inventory - Assembly Dept 101,200
To record tranferred of goods to other department

5 Finished Goods Inventory 106,100

To Work
recordinthe
Process Inventory
transfer of work- completed
Painting Dept
during the106,100
period

6 Cost of Goods Sold 95,100

Finished Goods Inventory 95,100
To record cost of goods sold for the period
11.)
a.
Units
Beginning WIP Inventory 10,000
Units started 150,000
Units to accout for 160,000 EUP
Conversion
Beginning WIP Inventory (30%) 10,000 Beginning WIP Inventory 10,000
Started during the period and com 130,000 Started &completed 130,000
Total unites completed 140,000
Ending WIP Inventory for next peri 20,000 Ending WIP Inventory (40%) 8,000
Units to accouted for 160,000 EUP 148,000

b.
Conversion
Beg WIP $ 4,600
Current period cost 210,000
Total Cost to account for 214,600
Divided by EUP 148,000
Cost per EUP $ 1.45

c. Total units completed 140,000

x
Cost Per EUP $ 1.45
Cost Transferred Out 203,000

d. Ending WIP Inventory (40%) 8,000

x
Cost Per EUP $ 1.45
Cost Assigned to End WIP 11,600

12.)
a.
Units
Beginning WIP Inventory 2,400
Units started 20,800
Units to accout for 23,200 EUP
DM Conversion
Beginning WIP Inventory 2,400 Beginning WIP Inventory 2,400 2,400
Started during the period and com 19,800 Started &completed 19,800 19,800
Total unites completed 22,200
Ending WIP Inventory for next peri 1,000 Ending WIP Inventory 800 600
Units to accouted for 23,200 EUP 23,000 22,800

b.
DM Conversion
Beg WIP $ 8,400 $ 7,200
Current period cost 97,400 129,600
Total Cost to account for 105,800 136,800
Divided by EUP 23,000 22,800
 Cost per EUP $ 4.60 $ 6.00

c.
DM Conversion
Ending WIP Inventory 800 600
x
Cost Per EUP $ 4.60 $ 6.00
Cost Assigned to End WIP 3,680 3,600

d.
DM Conversion
Total units completed 22,200 22,200
x
Cost Per EUP $ 4.60 $ 6.00
Cost Transffered Out 102,120 133,200

13.)
a.
Units
Beginning WIP Inventory 300
Units started 22,000
Units to accout for 22,300 EUP
DM Conversion
Beginning WIP Inventory 300 Beginning WIP Inventory 300 300
Started during the period and com 21,500 Started &completed 21,500 21,500
Total unites completed 21,800
Ending WIP Inventory for next peri 500 Ending WIP Inventory 250 100
Units to accouted for 22,300 EUP 22,050 21,900

b.
DM Conversion
Beg WIP $ 342 $ 4,518
Current period cost 45,963 538,602
Total Cost to account for 46,305 543,120
Divided by EUP 22,050 21,900
Cost per EUP $ 2.10 $ 24.80

c.
DM Conversion
Total units completed 21,800 21,800
x
Divided by EUP $ 2.10 $ 24.80
Cost Transffered Out 45,780 540,640

d.
DM Conversion
Ending WIP Inventory 250 100
x
Cost Per EUP $ 2.10 $ 24.80
Cost Assigned to End WIP 525 2,480
14.)
a.
Beg WIP 400
Units started 15,000
Unites for account for 15,400 EUP
DM Conversion
Beg WIP 400 Beginning WIP Inventory 160 240
Started and completed 14,100 Started &completed 14,100 14,100
Total unites completed 14,500
Ending WIP Inventory 900 Ending WIP Inventory 810 360
Units to accouted for 15,400 EUP 15,070 14,700

b.
DM Conversion Total
Beg WIP - -
Current period cost 119,053 418,950
Total Cost to account for 119,053 418,950
Divided by EUP 15,070 14,700
Cost per EUP $ 7.90 $ 28.50 $ 36.40

c.
DM Conversion
Ending WIP Inventory 810 360
x
Cost Per EUP $ 7.90 $ 28.50
Cost Assigned to End WIP 6,399 10,260

d.
Beg WIP $ 6,456.00
Cost to complete:
DM 1,264
Conversion 6,840
Total cost transferred out to finished goods on b 14,560
Started and completed 513,240
Total cost transferred out 527,800

15.)
a.
Beg WIP 200
Units started 20,000
Unites for account for 20,200 EUP
DM Conversion
Beg WIP 200 Beginning WIP Inventory 40 180
Started and completed 19,800 Started &completed 19,800 19,800
Total unites completed 20,000
Ending WIP Inventory 200 Ending WIP Inventory 160 100
Units to accouted for 20,200 EUP 20,000 20,080

b.
 DM Conversion Total
Beg WIP - -
Current period cost 96,000 413,648
Total Cost to account for 96,000 413,648
Divided by EUP 20,000 20,080
Cost per EUP $ 4.80 $ 20.60 $ 25.40

c.
DM Conversion
Ending WIP Inventory 160 100
x
Cost Per EUP $ 4.80 $ 20.60
Cost Assigned to End WIP 768 2,060

d.
Beg WIP $ 1,206.00
Cost to complete:
DM 192
Conversion 3,708
Total cost transferred out to finished goods on b 5,106
Started and completed 502,920
Total cost transferred out 508,026
16.)
Beg WIP 300
Units started 6,100
Unites for account for 6,400 EUP
DM Conversion
Beg WIP 300 Beginning WIP Inventory 75 270
Started and completed 5,300 Started &completed 5,300 5,300
Total unites completed 5,600
Ending WIP Inventory 800 Ending WIP Inventory 720 680
Units to accouted for 6,400 EUP 6,095 6,250

17.)
Beg WIP 800
Units started 9,400
Unites for account for 10,200 EUP
DM Conversion
Beg WIP 800 Beginning WIP Inventory 160 520
Started and completed 7,500 Started &completed 7,500 7,500
Total unites completed 8,300
Ending WIP Inventory 1,900 Ending WIP Inventory 1,425 760
Units to accouted for 10,200 EUP 9,085 8,780

18.)
DM Conversion Total
Beg WIP - -
Current period cost 170,940 179,775
Total Cost to account for 170,940 179,775
Divided by EUP 7,770 7,650
Cost per EUP $ 22.00 $ 23.50 $ 45.50

19.)
DM Conversion
Ending WIP Inventory 330 264
x
Cost Per EUP $ 9.50 $ 20.40 $ 29.90
Cost Assigned to End WIP 3,135 5,386

Beg WIP $ 1,920

Cost to complete:
DM 3,420
Conversion 2,856
Total cost transferred out to finished goods on 8,196
Started and completed 93,587
Total cost transferred out 101,783
20.)
a. Direct Method
Budgeted costs Building Serv Energy Pediatrics Geriatrics Surgery
before allocation 20,000 10,000 90,000 60,000 100,000
Allocation of Building: - 20,000
Pediatrics 3,333
Geriatrics 10,000
Surgery 6,667
Allocation of Energy: - 10,000
Pediatrics 2,500
Geriatrics 3,500
Surgery 4,000
COST AFTER ALOCATION - - 95,833 73,500 110,667

b. Step Method
Budgeted costs Building Serv Energy Pediatrics Geriatrics Surgery
before allocation 20,000 10,000 90,000 60,000 100,000
Allocation of Building: - 20,000
Energy 2,000
Pediatrics 3,000
Geriatrics 9,000
Surgery 6,000
Allocation of Energy: - 12,000
Pediatrics 3,000
Geriatrics 4,200
Surgery 4,800
COST AFTER ALOCATION - - 96,000 73,200 110,800
21.)
Raw Materials, Beg 37,000
Purchases 362,000
Raw Materials Available for U 399,000
Less: Raw Materials, Ending 44,000
Direct Materials Used 355,000
DL 207,000
Manuf OH 775,000
Total Manuf Cost 1,337,000
WIP, Beg 19,000
Less: WIP, End 3,000
Cost of Goods Manufactured 1,353,000
FG, Beg 62,000
Cost of Goods Available for Sa 1,415,000
FG, End 77,000
Cost of Goods Sold 1,338,000

22.)
a. Raw Materials, Beg 23,000
Purchases 67,000
Raw Materials Available for U 90,000
Less: Raw Materials, Ending 21,000
Direct Materials Used 69,000

b. FG, Beg 32,000

Cost of Goods Manufactured 124,000
Cost of Goods Available for Sa 156,000
Less: FG, End 37,000
Cost of Goods Sold 119,000

23.)
a. Raw Materials, Beg 26,000
Purchases 73,000
Raw Materials Available for U 99,000
Less: Raw Materials, Ending 39,000
Direct Materials Used 60,000

b. FG, Beg 42,000

Cost of Goods Manufactured 102,000
Cost of Goods Available for Sa 144,000
Less: FG, End 46,000
Cost of Goods Sold 98,000

24.)
 Since the corporation is
storing finished goods for
Christmas, Gary Resnick
suggests reclassifying some
period costs as product
a. costs. Product costs are
inventoried and only flow to
the income statement when
sold. The income statement
receives period costs.
Reclassifying period costs as
product costs will defer
expenditure recognition until
next quarter and boost the
current quarter's net
operating income since most
finished goods inventories
will be carried over.

The company's economic

situation and top
management's apparent
willingness to bend the rules
b. may alarm Mary Tappin.
Reclassifying costs
improperly shows that top
management doesn't feel
obligated to be honest with
the bank. Mary may wonder
what else they are doing
unethically or illegally with
such lax ethics.

25.) Product Cost:

a. DM 181,000
DL 120,000
Manufacturing Overhead:
Utilities Factory 10,000
Indirect Labor 32,000
 Depreciation of Prod Equip 28,000
Total Product Cost 371,000

Period Cost:
b. Sales Commissiom 69,000
Asministrative Salaries 99,000
Advertising 75,000
Depreciation of Admin Equip 49,000
Total Period Cost 292,000
26.) Product Cost:
a. DM 197,000
DL 78,000
Manufacturing Overhead:
Property Taxes Factory 8,000
Indirect Labor 31,000
Depreciation of Prod Equip 39,000
Total Product Cost 353,000

Period Cost:
b. Sales Commissiom 73,000
Marketing Salaries 39,000
Advertising 145,000
Admin Travel 102,000
Total Period Cost 359,000

27.)

Manufact
Direct Direct Period
uring
Materials Labor Cost
Overhead
a. Steel used in automobiles X
b. Assembly department employee wages X
c. Utility costs used in executive building X
d. Travel costs used by sales personnel X
e. Cost of shipping goods to customers X
f. Property taxes on assembly plant X
g. Glass used in automobiles X
h. Maintenance supplies X
i. Depreciation on assembly plant X
j. Plant manager's salary X
k. CEO's salary X
l. Depreciation on executive building X
m. Salary of marketing executive X
n. Tires installed on automobiles X
o. Advertising X

28.)
Carrie-Carrie Company
Schedule for Cost of Goods Manufactured
For the month ended xxx

Beginning balance of Workin Process Inventory $800

Manufacturing costs for the period
Raw material (all direct)
 Direct materials used $1,200
Direct labor 1,500
Manufacturing overhead 1,000
Total manufacturing cost 3,700
Total cost to account for $4,500
Ending balance of Work in Process Inventory (600)
Cost of Goods Manufacrured $3,900

Carrie-Carrie Company
Schedule of Cost of Goods Sold
For the month ended xxx

Beginning balance of Finished Goods Inventory $500

Cost of goods manufactured 3,900
Cost of goods available for sale $4,400
Ending balance of Finished Goods Inventory (250)
Cost of goods sold $4,150

29.)
Nash Aguas Corporation
Schedule for Cost of Goods Manufactured
For the month ended April 30

Beginning balance of Workin Process Inventory, 4/1 $18,000

Manufacturing costs for the period
Raw material (all direct)
Raw Materials, Beg 26,000
Purchases 50,000
Raw Materials Available for use 76,000
Raw Materials, End (35,000)
Total direct materials used 41,000
Direct labor 23,000
Manufacturing overhead 59,000
Total manufacturing cost 123,000
Total cost to account for $141,000
Ending balance of Work in Process Inventory, 4/30 (22,000)
Cost of Goods Manufacrured $119,000

Carrie-Carrie Company
Income Statement
For the month ended April 30

Sales $220,000
 Cost of Goods Sold:
Finished Goods Inventory, 4/1 $42,000
Cost of goods manufactured 119,000
Cost of goods available for sale $161,000
Finished Goods Inventory, 4/30 (29,000)
Less: Cost of goods sold 132,000
Gross Margin $88,000
Selling and Administrative Expense 61,000
Net Income $27,000

30.)
Mona Manufacturing Company
Schedule for Cost of Goods Manufactured
For the month ended xxx

Beginning balance of Workin Process Inventory $700

Manufacturing costs for the period
Raw material (all direct)
Raw Materials, Beg 900
Purchases 8,400
Raw Materials Available for use 9,300
Raw Materials, End (750)
Total direct materials used 8,550
Direct labor 1,240
Manufacturing overhead 2,070
Total manufacturing cost 11,860
Total cost to account for $12,560
Ending balance of Work in Process Inventory (1,050)
Cost of Goods Manufacrured $11,510

Mona Manufacturing Company

Income Statement
For the month ended xxx

Sales $16,800
Cost of Goods Sold:
Finished Goods Inventory, Beginning $970
Cost of goods manufactured 11,510
Cost of goods available for sale $12,480
Finished Goods Inventory, Ending (1,120)
Less: Cost of goods sold 11,360
Gross Margin $5,440
Selling and Administrative Expense 2,890
Net Income $2,550
31.)
Viola Corporation
Income Statement
For the month ended December 31

Sales $245,000
Cost of Goods Sold:
Finished Goods Inventory, 12/1 $59,000
Cost of goods manufactured 190,000
Cost of goods available for sale $249,000
Finished Goods Inventory, 12/31 (56,000)
Cost of goods sold 193,000
Gross Margin $52,000
Selling and Administrative Expense 49,000
Net Income $3,000

32.)
Holdeie Inc
Income Statement
For the month ended April 30

Sales $221,000
Cost of Goods Sold:
Merchandise Inventory, 4/1 $34,000
Merchandise Purcahsed 155,000
Cost of goods available for sale $189,000
Merchandise Inventory, 4/30 (48,000)
Cost of goods sold 141,000
Gross Margin $80,000
Selling and Administrative Expense 39,000
Net Income $41,000

33.)
Morrey Company
Schedule for Cost of Goods Manufactured
For the month ended xxx

Beginning balance of Workin Process Inventory $25,000

Manufacturing costs for the period
Raw material (all direct)
Beginning balance $10,000
Purchase of material 150,000
Raw material available for use 160,000
Ending balance (20,000)
Total direct materials used $140,000
 Direct labor 200,000
Manufacturing overhead 225,000
Total manufacturing cost 565,000
Total cost to account for $590,000
Ending balance of Work in Process Inventory (5,000)
Cost of Goods Manufacrured $585,000

34.) Pamer Company

Schedule for Cost of Goods Manufactured
For the month ended September 30

Beginning balance of Workin Process Inventory, 9/1 $24,000

Manufacturing costs for the period
Raw material (all direct)
Beginning balance $20,000
Purchase of material 60,000
Raw material available for use 80,000
Ending balance (23,000)
Total direct materials used $57,000
Direct labor 27,000
Manufacturing overhead 76,000
Total manufacturing cost 160,000
Total cost to account for $184,000
Ending balance of Work in Process Inventory, 9/30 (18,000)
Cost of Goods Manufacrured $166,000

35.)
1 Variable
2 Fixed
3 Fixed
4 Variable
5 Fixed
6 Variable
7 Fixed
8 Fixed
9 Fixed
10 Variable
36.)
1 Direct
2 Direct
3 Indirect
4 Direct
5 Direct
6 Direct
7 Indirect
8 Direct
9 Direct
10 Direct

37.)
Cost per hour 14
x
Working Time 48
DL 672

Premium Overtime:
Cost per overtime 7
x
Overtime 8
Manufacturing Overhead 56

38.)
Cost per hour 24
x
Working Time 44
DL 1,056

Premium Overtime:
Cost per overtime 12
x
Overtime 4
Manufacturing Overhead 48

39.)
Cost per hour 14
x
Working Time 44
DL 616

Indle Time:
Cost per hour 14
x
Working Time 4
 Manufacturing Overhead 56

Premium Overtime: Total Manufacturing OH 112

Cost per overtime 7
x
Overtime 8
Manufacturing Overhead 56

40.)
Cost per hour 18
x
Working Time 38
DL 684

Fringe Benefit: Total DM 836

Benefit Cost per Hour 4
x
Regular and Overtime 38
DM 152

Indle Time:
Cost per hour 18
x
Working Time 4
Manufacturing Overhead 72

Premium Overtime: Total Manufacturing OH 106

Cost per overtime 9
x
Overtime 2
Manufacturing Overhead 18

Fringe Benefit:
Benefit Cost per Hour 4
x
Regular and Overtime 4
Manufacturing Overhead 16
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