2015.9.14.

Problem153A

Printby:SangHyunHan
CYPC151_ACCT102_11369:11369ACCT102CHY2ManagerialAccounting/Ch15HW
Part2

*Problem153A
StellarInc.isaconstructioncompanyspecializingincustompatios.Thepatiosareconstructedof
concrete,brick,fiberglass,andlumber,dependinguponcustomerpreference.OnJune1,2014,
thegeneralledgerforStellarInc.containsthefollowingdata.
RawMaterialsInventory

$5,233

ManufacturingOverheadApplied

$40,669

WorkinProcessInventory

$6,903

ManufacturingOverheadIncurred

$39,436

SubsidiarydataforWorkinProcessInventoryonJune1areasfollows.
JobCostSheets
CustomerJob
CostElement

Gannon

Directmaterials

Rosenthal

Linton

$748

$997

$1,121

Directlabor

399

673

723

Manufacturingoverhead

498

841

903

$1,645

$2,511

$2,747

DuringJune,rawmaterialspurchasedonaccountwere$6,105,andallwageswerepaid.
Additionaloverheadcostsconsistedofdepreciationonequipment$872andmiscellaneouscostsof
$498incurredonaccount.
AsummaryofmaterialsrequisitionslipsandtimeticketsforJuneshowsthefollowing.
Customer
Job

MaterialsRequisition
Slips

Gannon

Time
Tickets

$997

$561

2,492

997

623

449

1,620

1,495

374

486

6,106

3,988

1,869

1,495

$7,975

$5,483

Koss
Rosenthal
Linton
Gannon
Generaluse

Overheadwaschargedtojobsatthesamerateof$1.25perdollarofdirectlaborcost.Thepatios
forcustomersGannon,Rosenthal,andLintonwerecompletedduringJuneandsoldforatotalof
$23,549.Eachcustomerpaidinfull.

Youranswerispartiallycorrect.
JournalizetheJunetransactions:(i)forpurchaseofrawmaterials,factorylaborcostsincurred,
andmanufacturingoverheadcostsincurred(ii)assignmentofdirectmaterials,labor,and
overheadtoproductionand(iii)completionofjobsandsaleofgoods.(Creditaccounttitlesare
automaticallyindentedwhenamountisentered.Donotindentmanually.Round
answersto0decimalplaces,e.g.1,250.)

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2015.9.14.

Problem153A

No. AccountTitlesandExplanation

Debit

(i)

6,105

6,105

5,483

5,483

1370

AccumulatedDepreciationEquipment

872

AccountsPayable

498

RawMaterialsInventory
AccountsPayable

Credit

(Torecordpurchaseofrawmaterials)
FactoryLabor
cash
(Torecordfactorylaborcostsincurred)
ManufacturingOverhead

(Torecordmanufacturingoverheadcostsincurred)
(ii) WorkinProcessInventory

6,106

ManufacturingOverhead

1,869

RawMaterialsInventory

7975

3,988

1495

5483

4985

4985

(Torecordassignmentofdirectmaterials)
WorkinProcessInventory
ManufacturingOverhead
factorylabor
(Torecordassignmentoffactorylabor)
WorkinProcessInventory
ManufacturingOverhead

(Torecordassignmentofmanufacturingoverhead)
(iii) FinishedGoodsInventory
WorkinProcessInventory

17247

17247

23,549

(Torecordcompletionofjobs)
cash
sales

23,549

(Torecordsaleofgoods)
costofgoodssold
FinishedGoodsInventory

17247

17247

(Torecordthecostofgoodssold)
Youranswerispartiallycorrect.

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2015.9.14.

Problem153A

PosttheentriestoWorkinProcessInventory.
WorkinProcessInventory
6/1

Balance

6903

June Completedwork 17247

Directmaterials

6,106

Directlabor

3,988

Overheadapplied

6/30 Balance

4985
15079

Youransweriscorrect.
ReconcilethebalanceinWorkinProcessInventorywiththecostsofunfinishedjobs.
BalanceinWorkinProcessInventory $ 4735

CostsofunfinishedJob: Koss

$ 4735

Youranswerispartiallycorrect.
PrepareacostofgoodsmanufacturedscheduleforJune.
STELLARINC.
CostofGoodsManufacturedSchedule
FortheMonthEndedJune30,2014
$ 6903

WorkinProcess,June1
DirectMaterialsUsed
DirectLabor
ManufacturingOverheadApplied

$ 6,106
3,988
4985

TotalManufacturingCosts

15079

TotalCostofWorkinProcess

21982

Less : WorkinProcess,June30
CostofGoodsManufactured

4735
$ 17247
QuestionAttempts:5of5used

Copyright20002015byJohnWiley&Sons,Inc.orrelatedcompanies.Allrightsreserved.

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