ACC104 CHAPT. 17 SOLUTIONS
Solutions to Exercises
Ex. 17–1
a.
Process costing or activity-based costing
b.
Cost of finished goods manufactured
c.
Equivalent units
d.
None (this statement describes underapplied overhead)
e.
Job order costing or activity-based costing
f.
Activity-based costing
Ex. 17–2
a.
(1)
Materials Inventory
XXX
Accounts Payable
XXX
To record the purchase of direct materials.
(2)
Work in Process Inventory
XXX
Materials Inventory
XXX
To record cost of direct materials used.
b.
(1)
Direct Labor
XXX
Cash
XXX
To record factory payroll paid to direct workers.
(2)
Work in Process Inventory
XXX
Direct Labor
XXX
To record cost of direct labor applied to production of the period.
c.
(1)
Manufacturing Overhead
XXX
Cash (or Accounts Payable)
XXX
To record factory overhead cost (such as payroll for indirect labor) incurred.
(2)
Work in Process Inventory
XXX
Manufacturing Overhead
XXX
To record factory overhead costs applied to production of the period.
d.
(1)
Finished Goods Inventory
XXX
Work in Process Inventory
XXX
To record transfer of cost of completed goods to the Finished Goods Inventory account.
(2)
Cost of Goods Sold
XXX
Finished Goods Inventory
XXX
To record cost of goods sold.
Ex. 17–3
a.
$3,150 ($900 + $2,250 = jobs no. 103 and 104)
b.
$7,440 ($4,200 + $3,240 = jobs no. 101 and 102)
c.
$13,690 ($4,200 + $3,240 + $6,250 = jobs no. 101, 102, and 104)
d.
$9,700 ($6,000 + $3,700 = jobs no. 105 and 106)
e.
$2,900 (job no. 103)
Ex. 17–4
a.
Work in Process Inventory
12,200
Materials Inventory
7,720
Direct Labor
1,400
Manufacturing Overhead
3,080
Manufacturing costs incurred on job no. 321.
b.
Finished Goods Inventory
Ex. 17–1
a.
Process costing or activity-based costing
b.
Cost of finished goods manufactured
c.
Equivalent units
d.
None (this statement describes underapplied overhead)
e.
Job order costing or activity-based costing
f.
Activity-based costing
Ex. 17–2
a.
(1)
Materials Inventory
XXX
Accounts Payable
XXX
To record the purchase of direct materials.
(2)
Work in Process Inventory
XXX
Materials Inventory
XXX
To record cost of direct materials used.
b.
(1)
Direct Labor
XXX
Cash
XXX
To record factory payroll paid to direct workers.
(2)
Work in Process Inventory
XXX
Direct Labor
XXX
To record cost of direct labor applied to production of the period.
c.
(1)
Manufacturing Overhead
XXX
Cash (or Accounts Payable)
XXX
To record factory overhead cost (such as payroll for indirect labor) incurred.
(2)
Work in Process Inventory
XXX
Manufacturing Overhead
XXX
To record factory overhead costs applied to production of the period.
d.
(1)
Finished Goods Inventory
XXX
Work in Process Inventory
XXX
To record transfer of cost of completed goods to the Finished Goods Inventory account.
(2)
Cost of Goods Sold
XXX
Finished Goods Inventory
XXX
To record cost of goods sold.
Ex. 17–3
a.
$3,150 ($900 + $2,250 = jobs no. 103 and 104)
b.
$7,440 ($4,200 + $3,240 = jobs no. 101 and 102)
c.
$13,690 ($4,200 + $3,240 + $6,250 = jobs no. 101, 102, and 104)
d.
$9,700 ($6,000 + $3,700 = jobs no. 105 and 106)
e.
$2,900 (job no. 103)
Ex. 17–4
a.
Work in Process Inventory
12,200
Materials Inventory
7,720
Direct Labor
1,400
Manufacturing Overhead
3,080
Manufacturing costs incurred on job no. 321.
b.
Finished Goods Inventory