Chapter 17 Exercises
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Transcript of Chapter 17 Exercises
Chapter 17
Exercises
Job Order Costing
Job Order CostingJob Order CostingJob Order CostingJob Order Costing
• In-Class Exercise (Form groups and work exercise):
• Exercise No. Page E17-19 1043 Allocating & adjusting
manufacturing overhead
• In-Class Exercise (Form groups and work exercise):
• Exercise No. Page E17-19 1043 Allocating & adjusting
manufacturing overhead
Allocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing Overhead
Requirements: (1) Compute the predetermined overhead rate per direct labor dollar.
(2) Prepare the journal entry to allocate overhead cost for the year.
(3) Use a T-account to determine the amount of under-allocated or over-allocated manufacturing overhead.
(4) Prepare the journal entry to adjust for the under-allocated or over-allocated manufacturing overhead.
Requirements: (1) Compute the predetermined overhead rate per direct labor dollar.
(2) Prepare the journal entry to allocate overhead cost for the year.
(3) Use a T-account to determine the amount of under-allocated or over-allocated manufacturing overhead.
(4) Prepare the journal entry to adjust for the under-allocated or over-allocated manufacturing overhead.
Exercise E17-19:
Selective cost data for Antique Print Co. are as follows:
Estimated manufacturing overhead cost for the year…..$ 115,000Estimated dir labor cost for the year………………………. 71,875Actual manufacturing overhead cost for the year………. 119,000Actual direct labor cost for the year……………………….. 73,000
Exercise E17-19:
Selective cost data for Antique Print Co. are as follows:
Estimated manufacturing overhead cost for the year…..$ 115,000Estimated dir labor cost for the year………………………. 71,875Actual manufacturing overhead cost for the year………. 119,000Actual direct labor cost for the year……………………….. 73,000
Allocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing Overhead
Allocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing Overhead
Estimated overhead cost
Estimated dir.labor cost
Estimated overhead cost
Estimated dir.labor cost
Allocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing Overhead
Allocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing Overhead
Allocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing Overhead
End of ExerciseEnd of Exercise
Allocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing OverheadAllocating & Adjusting Manufacturing Overhead
• In-Class Exercise (Form groups and work exercise):
• Exercise No. Page E17-24 1046 Preparing job order costing
journal entries
(Use the format, as reflected on the next slide, to complete this exercise)
• In-Class Exercise (Form groups and work exercise):
• Exercise No. Page E17-24 1046 Preparing job order costing
journal entries
(Use the format, as reflected on the next slide, to complete this exercise)
Preparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal Entries
Preparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal Entries
Date Description Debit Credit
General JournalGeneral Journal
Preparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal Entries
Exercise E17-24:
Journalize the following transactions of Judy’s Sofas:
a. Incurred and paid website expenses, $2,900.b. Incurred manufacturing wages of $15,000, 60% of which was direct labor and 40% of which was indirect labor.c. Purchased raw materials on account, $14,000.d. Used in production: direct materials, $9,500 indirect materials, $4,500e. Recorded manufacturing overhead depreciation on plant, $10,000; plant insurance (previously paid), $1,300; plant property tax, $4,200 (credit Property Tax Payable).f. Allocated manufacturing overhead to jobs, 250% of direct labor costs.g. Completed production on jobs with costs of $38,000.h. Sold inventory on account, $20,000; cost of goods sold, $10,000.i. Adjusted for over-allocation or under-allocation of overhead.
Exercise E17-24:
Journalize the following transactions of Judy’s Sofas:
a. Incurred and paid website expenses, $2,900.b. Incurred manufacturing wages of $15,000, 60% of which was direct labor and 40% of which was indirect labor.c. Purchased raw materials on account, $14,000.d. Used in production: direct materials, $9,500 indirect materials, $4,500e. Recorded manufacturing overhead depreciation on plant, $10,000; plant insurance (previously paid), $1,300; plant property tax, $4,200 (credit Property Tax Payable).f. Allocated manufacturing overhead to jobs, 250% of direct labor costs.g. Completed production on jobs with costs of $38,000.h. Sold inventory on account, $20,000; cost of goods sold, $10,000.i. Adjusted for over-allocation or under-allocation of overhead.
Preparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal Entries
e.
Preparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal Entries
e.
Preparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal Entries
e.
Manufacturing Overhead
b. 6,000 f. 22,500 d. 4,500 e. 10,000 e. 1,300
e. 4,200 i. 3,500 26,000 26,000
Manufacturing Overhead
b. 6,000 f. 22,500 d. 4,500 e. 10,000 e. 1,300
e. 4,200 i. 3,500 26,000 26,000
End of ExerciseEnd of Exercise
Preparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal EntriesPreparing Job Order Costing Journal Entries