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    Answer P5-2

    Uploaded by

    Prilly Manembu
    The document contains accounting information for a manufacturing company including work in process, finished goods, cost of goods sold, overhead applied and actual overhead amounts for jobs completed in April. It calculates cost of goods manufactured as $28,230 and underapplied overhead of $1,765 for the month. Finally, it determines the gross profit for April was $10,175 based on sales of $35,820 for jobs 201, 202 and 205.

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    Answer P5-2

    Uploaded by

    Prilly Manembu
    490 views2 pages
    The document contains accounting information for a manufacturing company including work in process, finished goods, cost of goods sold, overhead applied and actual overhead amounts for jobs completed in April. It calculates cost of goods manufactured as $28,230 and underapplied overhead of $1,765 for the month. Finally, it determines the gross profit for April was $10,175 based on sales of $35,820 for jobs 201, 202 and 205.

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    Jawaban

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    The document contains accounting information for a manufacturing company including work in process, finished goods, cost of goods sold, overhead applied and actual overhead amounts for jobs completed in April. It calculates cost of goods manufactured as $28,230 and underapplied overhead of $1,765 for the month. Finally, it determines the gross profit for April was $10,175 based on sales of $35,820 for jobs 201, 202 and 205.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    490 views2 pages

    Answer P5-2

    Uploaded by

    Prilly Manembu
    The document contains accounting information for a manufacturing company including work in process, finished goods, cost of goods sold, overhead applied and actual overhead amounts for jobs completed in April. It calculates cost of goods manufactured as $28,230 and underapplied overhead of $1,765 for the month. Finally, it determines the gross profit for April was $10,175 based on sales of $35,820 for jobs 201, 202 and 205.

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    of 2

    (1) Materials

    4/1 2,700 Indirect


    Purchases 11,500 Material 2,790
    14,200 Direct
    1,705 Material 9,705*
    12,495

    * $9,705 = $2,450 + $2,970 + $6,285


    (Job 207) (Job 204) (Jobs 202, 203, 205, & 206)

    Work in process ending inventory consists of jobs 203 & 206:


    Job 203 Job 206 Total
    Direct materials ($1,480 + $ 555) + $1,980 = $ 4,015
    Direct labor ( 1,000 + 1,500) + 1,000 = 3,500
    Applied overhead ( 800* + 1,200) + 800 = 2,800
    Total ( 3,280 + 3,255) + 3,780 = $10,3155
    * Applied overhead is 80% of direct labor cost.

    (2) Work in Process............................................................ 4,450


    Materials ............................................................... 1,250
    Payroll ................................................................... 2,000
    Applied Overhead................................................ 1,200
    Finished Goods (4,700 + 1,250 + 2,000 + 1,200) ........ 9,150
    Work in Process................................................... 9,150
    Cost of Goods Sold...................................................... 9,150
    Finished Goods ................................................... 9,150
    Accounts Receivable ................................................... 13,725
    Sales ..................................................................... 13,725

    (3) Cost of goods manufactured = cost of jobs finished in April.


    Job 205:
    Direct material ............................ $ 2,500
    Direct labor ................................. 2,100 (105 direct labor hours × $20)
    Applied overhead ....................... 1,680 (105 direct labor hours × $16)
    Total Job 205........................... $ 6,280

    Job 202 ................................................. 9,150


    Job 204 ................................................. 6,930
    Job 207 ................................................. 5,870
    Total ......................................... $28,230
    (4) Actual overhead (1,375 + 2,500 + 2,700 + 2,790) ....... $9,365
    Applied overhead:
    Jobs 202, 203, 205, 206 (330* hours × $16) ....... $ 5,280
    Job 207 ................................................................. 1,520
    Job 204 ($1,760 – $960) ...................................... 800
    Total applied overhead............................... 7,600
    Underapplied................................................................. $1,765
    *100 + 75 + 105 + 50

    (5) Jobs 201, 202, and 205 were sold. Their costs are $8450 + $9,150 + $6,280 = $23,880
    Sales ( $23,880 × 150%) $ 35,820
    Cost of goods sold (23,880)
    Underapplied overhead (1,765)
    Gross profit for April $ 10,175

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