The following data were taken from the records of Cullumber Enterprises, a Canadian manufacturer that uses a
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Question:
The following data were taken from the records of Cullumber Enterprises, a Canadian manufacturer that uses a normal joborder costing system:
Work in Process, December
Job Number
Direct materials
$ $ $
Direct labour
Applied overhead
Total
$ $ $
During December, the company worked on jobs numbered through and incurred the following costs:
Job Number
Total
Direct materials
$ $ $ $ $ $
Direct labour
$ $ $ $ $ $
Direct labour hours
Additional information:
Total overhead costs are applied to jobs on the basis of direct labour hours worked. At the beginning of the year, the company estimated that total overhead costs for the year would be $ and the total labour hours worked would be
The balance in the Departmental Overhead Control account on December was $ Actual direct labour hours for the previous months January through November were
There were no jobs in finished goods on December
Expenses for December were as follows not yet recorded in the books of account:
Direct materials purchased $
Salaries
Production clerk
Supervisor
Depreciation plant and equipment
Factory supplies
Sales staff salaries
Utilities factory
Administrative expenses
$
The company writes off all under or overapplied overhead to Cost of Goods Sold at the end of the year.
Jobs and were completed during December. Only Job remained in finished goods on December
The company charges its customers of total manufacturing cost.
Cost of goods sold to December was $
a
Using the information given, calculate the following amounts:
The predetermined overhead rate used to apply overhead to products
$enter a dollar amount per labour hour
Correct answer per labour hour
The cost of ending work in process inventory
$enter a dollar amount
Correct answer
The cost of goods manufactured in December
$enter a dollar amount
Correct answer
The unadjusted gross margin for December
$enter a dollar amount
Correct answer
eTextbook and MediaAssistance Used
Solution
List of Accounts
Attempts: of used
b
Prepare the summary journal entries to the control accounts required to record all the transactions for December that relate to production. Note: You should not make entries for individual jobs.List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.
Account Titles and Explanation
Debit
Credit
enter an account title to record purchase of raw materials on account
Raw Materials Inventory
enter a debit amount
enter a credit amount
enter an account title to record purchase of raw materials on account
enter a debit amount
enter a credit amount
To record purchase of raw materials on account.
enter an account title to assign materials and labour to jobs and overhead
enter a debit amount
enter a credit amount
enter an account title to assign materials and labour to jobs and overhead
enter a debit amount
enter a credit amount
enter an account title to assign materials and labour to jobs and overhead
enter a debit amount
enter a credit amount
enter an account title to assign materials and labour to jobs and overhead
enter a debit amount
enter a credit amount
To assign materials and labour to jobs and overhead.
enter an account title to record completion of jobs
Finished Goods Inventory
enter a debit amount
enter a credit amount
enter an account title to record completion of jobs
Work in Process Inventory
enter a debit amount
enter a credit amount
To record completion of jobs.
enter an account title to record the cost of goods sold
Cost of Goods Sold
enter a debit amount
enter a credit amount
enter an account title to record the cost of goods sold
Finished Goods Inventory
enter a debit amount
enter a credit amount
To record the cost of goods sold.
enter an account title to record manufacturing overhead costs incurred
Manufacturing Overhead
enter a debit amount
enter a credit amount
enter an account title to record manufacturing overhead costs incurred
Accumulated DepreciationPlant and Equipment
enter a debit amount
enter a credit amount
enter an account title to record manufacturing overhead costs incurred
Accounts Payable
enter a debit amount
enter a credit amount
To record manufacturing overhead costs incurred.
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
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