What is the cost of the may 31 inventory

P14-3B

Indicate the missing amount of different cost items, and prepare a condensed cost of goods manufactured schedule, an income statement, and a partial balance sheet.

(SO 5, 6, 7), AN

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

Case

A

B

Direct materials used

$ 6,300

$ (g)  

Direct labor

3,000

4,000

Manufacturing overhead

6,000

5,000

Total manufacturing costs

(a)  

16,000

Beginning work in process inventory

1,000

(h)  

Ending work in process inventory

(b)  

2,000

Sales

22,500

(i)  

Sales discounts

1,500

1,200

Cost of goods manufactured

15,800

20,000

Beginning finished goods inventory

(c)  

5,000

Goods available for sale

18,300

(j)  

Cost of goods sold

(d)  

(k) 

Ending finished goods inventory

1,200

2,500

Gross profit

(e) 

6,000

Operating expenses

2,700

(l) 

Net income

(f) 

2,200

Instructions

(a)

Indicate the missing amount for each letter.

(b)

Prepare a condensed cost of goods manufactured schedule for Case A.

(c)

Prepare an income statement and the current assets section of the balance sheet for Case A. Assume that in Case A the other items in the current assets section are as follows: Cash $3,000, Receivables (net) $10,000, Raw Materials $700, and Prepaid Expenses $200.

E15-9

Prepare a cost of goods manufactured schedule and partial financial statements.

(SO 2, 5), AP

At May 31, 2012, the accounts of Mantle Manufacturing Company show the following.

E15-

1.

May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200.

2.

May 31 inventories—finished goods $9,500, work in process $17,900, and raw materials $7,100.

3.

Debit postings to work in process were: direct materials $62,400, direct labor $50,000, and manufacturing overhead applied $40,000.

4.

Sales totaled $210,000.

Instructions

(a)

Prepare a condensed cost of goods manufactured schedule.

(b)

Prepare an income statement for May through gross profit.

(c)

Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2012.

E15-12

Determine cost of jobs and ending balance in work in process and overhead accounts.

(SO 3, 4, 6), AP

Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.

Lynn

Brian

Mike

Direct materials

$600

$400

$200

Auditor labor costs

$5,400

$6,600

$3,375

Auditor hours

72

88

45

Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $50 per auditor hour. The Lynn job is the only incomplete job at the end of November. Actual overhead for the month was $11,000.

Instructions

(a)

Determine the cost of each job.

(b)

Indicate the balance of the Work in Process account at the end of November.

(c)

Calculate the ending balance of the Manufacturing Overhead account for November.

P15-3B

Prepare entries in a job order cost system and cost of goods manufactured schedule.

(SO 2, 3, 4, 5), AP

Robert Perez is a contractor specializing in custom-built jacuzzis. On May 1, 2012, his ledger contains the following data.

Raw Materials Inventory

$30,000

Work in Process Inventory

 12,200

Manufacturing Overhead

  2,500 (dr.)

The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000. Subsidiary data for Work in Process Inventory on May 1 include:

Job Cost Sheets

Job by Customer

Direct Materials

Direct Labor

Manufacturing Overhead

Stiner

$2,500

$2,000

$1,400

Alton

2,000

1,200

840

Herman

900

800

560

$5,400

$4,000

$2,800

During May, the following costs were incurred: raw materials purchased on account $4,000, labor paid $7,000, and manufacturing overhead paid $1,400.

A summary of materials requisition slips and time tickets for the month of May reveals the following.

Job by Customer

Materials Requisition Slips

Time Tickets

Stiner

$ 500

$ 400

Alton

600

1,000

Herman

2,300

1,300

Smith

1,900

2,300

5,300

5,000

General use

1,500

2,000

$6,800

$7,000

Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost. The jacuzzis for customers Stiner, Alton, and Herman were completed during May. The three jacuzzis were sold for a total of $36,000.

Instructions

(a)

Prepare journal entries for the May transactions: (i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of raw materials, labor, and overhead to production; and (iii) completion of jobs and sale of goods.

(b)

Post the entries to Work in Process Inventory.

(c)

Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.

(d)

Prepare a cost of goods manufactured schedule for May.