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Problem 1:
Able Corporation incurred the following costs.
|
Beginning direct materials inventory |
$16,000 |
|
|
Beginning work-in-process inventory |
$7,000 |
|
|
Beginning finished goods inventory |
$19,000 |
|
|
Ending direct materials inventory |
||
|
Ending work in process |
$14,000 |
|
|
Ending finished goods |
$ 26,000 |
|
|
Factory supervisor’s salary |
$28,000 |
|
|
Depreciation on plant |
$12,000 |
|
|
Sales |
$800,000 |
|
|
Selling and administrative expenses |
$125,000 |
|
|
Plant maintenance |
$6,000 |
|
|
Plant utilities |
$11,000 |
|
|
Direct material purchases |
$215,000 |
|
|
Direct labor |
$240,000 |
Calculate the following.
a. Direct materials used
b. Cost of goods manufactured
c. Cost of goods sold
d. Operating income
Problem 2:
Below is information from Job Card 506 for the Bearing Manufacturing Company.
Date
started: June 15, 2015 Date Completed: July 24, 2015
|
Direct Materials |
Direct Labor |
Applied Factory Overhead |
Job Total |
|
6/15/2015 |
$ 5,000 |
||
|
6/25/2015 |
$1,200 |
$600 |
|
|
6/27/2015 |
$2,300 |
||
|
7/6/2015 |
$ 1,540 |
$770 |
|
|
7/15/2015 |
$2,600 |
||
|
7/24/2015 |
$760 |
$380 |
Job 506 was sold on credit on July 24, 2015, for 180% of its cost. Factory OH was applied on the basis of DL.
Required:
a. Prepare the journal entries to record the costs incurred for Job 506 in 2015 for direct materials, direct labor, and factory overhead.
b. Prepare the journal entry to record the completion of Job 506.
c. What is the predetermined factory overhead rate for Bearing Manufacturing?
d. Prepare the journal entries to record the sale of Job 506.
