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    Exercises 1 3 Joc

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    Trine De Leon
    1. Seeley transferred $250,000 of completed goods out of work in process during January. To calculate cost of goods sold for January, take the difference between the beginning and ending balances of work in process ($21,000 - $23,000 = -$2,000) and add the amount transferred out of work in process ($250,000), for a total of $252,000 cost of goods sold. 2. Finn Manufacturing uses a job order cost accounting system. Journal entries are needed to record raw materials purchased for $25,000 on account, materials and labor costs transferred to jobs, manufacturing overhead applied, goods completed and transferred to finished goods, and goods sold. 3. S

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    Exercises 1 3 Joc

    Uploaded by

    Trine De Leon
    54 views2 pages
    1. Seeley transferred $250,000 of completed goods out of work in process during January. To calculate cost of goods sold for January, take the difference between the beginning and ending balances of work in process ($21,000 - $23,000 = -$2,000) and add the amount transferred out of work in process ($250,000), for a total of $252,000 cost of goods sold. 2. Finn Manufacturing uses a job order cost accounting system. Journal entries are needed to record raw materials purchased for $25,000 on account, materials and labor costs transferred to jobs, manufacturing overhead applied, goods completed and transferred to finished goods, and goods sold. 3. S

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    1. Seeley transferred $250,000 of completed goods out of work in process during January. To calculate cost of goods sold for January, take the difference between the beginning and ending balances of work in process ($21,000 - $23,000 = -$2,000) and add the amount transferred out of work in process ($250,000), for a total of $252,000 cost of goods sold. 2. Finn Manufacturing uses a job order cost accounting system. Journal entries are needed to record raw materials purchased for $25,000 on account, materials and labor costs transferred to jobs, manufacturing overhead applied, goods completed and transferred to finished goods, and goods sold. 3. S

    Copyright:

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

    Exercises 1 3 Joc

    Uploaded by

    Trine De Leon
    1. Seeley transferred $250,000 of completed goods out of work in process during January. To calculate cost of goods sold for January, take the difference between the beginning and ending balances of work in process ($21,000 - $23,000 = -$2,000) and add the amount transferred out of work in process ($250,000), for a total of $252,000 cost of goods sold. 2. Finn Manufacturing uses a job order cost accounting system. Journal entries are needed to record raw materials purchased for $25,000 on account, materials and labor costs transferred to jobs, manufacturing overhead applied, goods completed and transferred to finished goods, and goods sold. 3. S

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Exercises

    Ex. 1
    The manufacturing operations of Seeley, Inc. had the following balances for the month of
    January:
    January 1 January 31
    Raw materials $12,000 $13,000
    Work in process 21,000 23,000
    Finished goods 14,000 16,000

    Seeley transferred $250,000 of completed goods out of work in process during January.

    Instructions
    Compute the cost of goods sold for January.

    Ex. 2
    Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual
    inventory records. Prepare journal entries to record the following transactions during the month
    of June.

    June 1 Purchased raw materials for $25,000 on account.

    8 Raw materials requisitioned by production:


    Direct materials $8,000
    Indirect materials 1,000

    15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.

    25 Incurred $78,000 of factory labor.

    25 Time tickets indicated the following:


    Direct Labor (4,500 hrs × $12 per hr) = $54,000
    Indirect Labor (3,000 hrs × $8 per hr) = 24,000
    $78,000

    25 Applied manufacturing overhead to production based on a predetermined overhead


    rate of $9 per direct labor hour worked.

    28 Goods costing $18,000 were completed in the factory and were transferred to
    finished goods.

    30 Goods costing $15,000 were sold for $20,000 on account.

    Ex. 3
    Sardin Company begins the month of March with $17,000 of work in process costs from Job
    324. Information from job cost sheets shows the following additional costs assigned during
    March, April, and May of 2008:
    Manufacturing Costs Assigned
    Job No. March April May
    324 $26,000
    325 18,000 $23,000 $15,000
    326 41,000 11,000
    327 16,000 31,000
    328 24,000 46,000

    Job 324 was completed in March. Jobs 325 and 327 were completed in May, and Job 326 was
    completed in April. Jobs are sold during the month after completion. Total revenue for jobs sold
    during the 3-month period is $145,000.

    Instructions
    Calculate the balances of the work in process and finished goods inventory accounts at the end
    of May.

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