Professional Documents
Culture Documents
Chapter 3
Chapter 3
(a) 1.
2. Last year 70%, or ($4,200 $6,000); this year 75% (either $6,375
$8,500 or $3,000 $4,000).
(b) Jan. 31
8,000
31
12,500
31
9,375
31
44,000
8,000
12,500
9,375
44,000
EXERCISE 3-21
(a)
(b)
$17,400
$54,200
32,000
40,000
126,200
143,600
17,900
$125,700
$200,000
$12,600
125,700
138,300
15,400
122,900
$77,100
EXERCISE 3-24
(a)
Koppel
Direct materials
$ 700
Auditor labour costs
5,400
Applied overhead
4,320
Total cost
$10,420
Dupont
$ 400
6,600
5,400
$12,400
Rojas
$ 250
3,375
2,400
$6,025
(b) The Koppel job is the only incomplete job, therefore, $10,420.
(c) Actual overhead
Applied overhead
Balance
$12,000 (DR)
12,120 (CR)
$ 120 (CR) Over-applied
TOTAL
12,120
PROBLEM 3-27A
(a)$1,500,000 $750,000 direct labour costs = 200% of direct labour costs
(b) See solution to part (e) for job cost sheets
(c) Raw Materials Inventory............................................. 100,000
Accounts Payable................................................
Factory Labour............................................................
Factory Wages Payable.......................................
Employer Payroll Taxes Payable........................
75,000
Manufacturing Overhead............................................
Accounts Payable................................................
Accumulated Depreciation.................................
Raw Materials Inventory......................................
Factory Labour....................................................
71,000
89,000
57,000
100,000
57,000
18,000
22,000
14,000
18,000
17,000
89,000
57,000
114,000
$42,000
22,000
34,000
$98,000
*$7,000 200%
Job No. 51
Date
Direct Materials
Jan.
$42,000
$42,000
Direct
Labour
$28,000
$28,000
Manufacturing Overhead
**$56,000**
**$56,000**
Direct
Labour
$22,000
Manufacturing Overhead
***$44,000***
(f)
(g)
224,000
218,000
Accounts Receivable...............................................
Sales..................................................................
($152,000 + $198,000)
350,000
Finished
Goods Inventory
Beginning balance
120,000 218,000
Cost of completed jobs 50 and 51 224,000
Ending balance
126,000
224,000
218,000
350,000
The balance in this account consists of the cost of completed Job No.
51 which has not yet been sold.
(h) Manufacturing Overhead
Actual
Applied
71,000
114,000
43,000
The balance indicates that manufacturing overhead was over-applied
by $43,000.
PROBLEM 3-34A
Note: Some letters cannot be determined until subsequent letters are
solved.
(a) $84,000
($75,000 + $9,000).
(b) $21,400
(c) $32,200
($19,000 + $13,200).
(d) $91,200
($114,000 125%).
(g) $5,375
(j)
PROBLEM 3-41B
(a) Check the relationship between direct labour and factory overhead
applied for several of the jobs to see what the overhead rate is:
Job 43: $288 $360 = 80% of direct labour cost.
Job 44: $792 $990 = 80% of direct labour cost.
Job 47: $680 $850 = 80% of direct labour cost.
The predetermined overhead rate is 80% of direct labour costs.
(b)
(1)
(c)
(d)
$2,832
120 (1)
2,712
600
$2,112
$570
150
12
0
$30
0
$4,190
300
$3,890
$3,540
150 (given)
$3,390
(1) above
$
$3,890
3,390
2,712
$ 2,550
10,085
12,635
3,550
$ 9,085
570
9,992
10,562
477
$10,085
CASE 3-48
(a) Costs assigned to Jobs 101 & 111:
Job 101
Prior to July:
Direct materials
$ 9,000
Direct labour
2,000
Overhead applied 1
2,400
Added in July:
Direct materials
Direct labour
1,000
Overhead applied 1
1,200
$15,600
1
Direct labour cost 120%
(b)
(c)
Job 111
$ 600
100
120
500
3,000
3,600
$7,920
(1)
(2)
(3)
(4)
Job 115
$ 800
200
240
$1,240
$ 2,500
1,500
1,800
$ 5,800
Total
$ 5,800
4,400
4,000
4,800
$19,000
$ 4,900
1,300
$ 3,600
$ 8,000
4,200
$ 3,800
(d)