Cost Accounting Homework, 3 Questions with a few parts

4-31. JOB COSTING, JOURNAL ENTRIES. Docks Transport assembles prestige
manufactured homes. Its job-costing system has two direct-cost categories (direct materials and
direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a
budgeted $21 per machine-hour in 2020). The following data (in millions) show operation costs
for 2020:
Materials Control, beginning balance, January 1, 2020
$ 13
Work-in-Process Control, beginning balance, January 1, 2020
4
Finished Goods Control, beginning balance, January 1, 2020
7
Materials and supplies purchased on credit
154
Direct materials used
147
Indirect materials (supplies) issued to various production departments
19
Direct manufacturing labor
90
Indirect manufacturing labor incurred by various production
departments
32
Depreciation on plant and manufacturing equipment
26
Miscellaneous manufacturing overhead incurred (ordinarily would be
detailed as repairs, utilities, etc., with a corresponding credit to various
liability accounts)
14
Manufacturing overhead allocated, 4,000,000 actual machine-hours
?
Cost of goods manufactured
295
Revenues
400
Cost of goods sold
293
2. Prepare journal entries. Number your entries. Explanations for each entry may be
omitted. Post to T-accounts. What is the ending balance of Work-in-Process Control?
3. Show the journal entry for adjusting for under- or overallocated manufacturing
overhead directly as a year-end writeoff to Cost of Goods Sold. Post the entry to
T-accounts.
4. How did Docks Transport perform in 2020?
4-39. PRORATION OF OVERHEAD. (Z. Iqbal, adapted) The Zaf Radiator Company uses a
normal-costing system with a single manufacturing overhead cost pool and
machine-hours as the cost-allocation base. The following data are for 2020:
Budgeted manufacturing overhead costs
$4,800,000
Overhead allocation base
Machine-hours
Budgeted machine-hours
80,000
Manufacturing overhead costs incurred
$4,900,000
Actual machine-hours
75,000
Machine-hours data and the ending balances (before proration of under- or overallocated
overhead) are as follows:
Actual Machine-Hours
Actual Machine-Hours
2020 End of year Balance
2020 End-of-Year Balance
Cost of Goods Sold
60,000
$8,000,000
Finished Goods Control
11,000
1,250,000
Work-in-Process Control
4,000
750,000
1. Compute the budgeted manufacturing overhead rate for 2020.
2. Compute the under- or overallocated manufacturing overhead of Zaf Radiator in 2020.
Adjust for this amount using the following:
1. a. Write-off to Cost of Goods Sold
2. b. Proration based on ending balances (before proration) in Work-in-Process
Control, Finished Goods Control, and Cost of Goods Sold
4-43. OVERVIEW OF GENERAL LEDGER RELATIONSHIPS. Brane Company uses normal
costing in its job-costing system. The company produces custom bikes for toddlers. The
beginning balances (December 1) and ending balances (as of December 30) in their
inventory accounts are as follows:
Additional information:
a. Direct materials purchased during December were $66,400.
b. Cost of goods manufactured for December was $235,000.
c. No direct materials were returned to suppliers.
d. No units were started or completed on December 31 and no direct materials
were requisitioned on December 31.
e. The manufacturing labor costs for the December 31 working day: direct
manufacturing labor, $4,350, and indirect manufacturing labor, $1,450.
f. Manufacturing overhead has been allocated at 140% of direct manufacturing
labor costs through December 31.
Required
1. Prepare journal entries for the December 31 payroll.
2. Use T-accounts to compute the following:
a. The total amount of materials requisitioned into work in process during
December
b. The total amount of direct manufacturing labor recorded in work in process
during December (Hint: You have to solve requirements 2b and 2c simultaneously)
c. The total amount of manufacturing overhead recorded in work in process
during December
d. Ending balance in work in process, December 31
e. Cost of goods sold for December before adjustments for under- or
overallocated manufacturing overhead
3. Prepare closing journal entries related to manufacturing overhead. Assume that
all under- or overallocated manufacturing overhead is closed directly to Cost of
Goods Sold.