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Problem 15-1A Job No. Direct Materials Direct Labor Warning Don\'t show me this

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Problem 15-1A

Job No.

Direct Materials

Direct Labor

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Job No. 50

Date

Direct Materials

Direct Labor

Manufacturing Overhead

Job No. 51

Date

Direct Materials

Direct Labor

Manufacturing Overhead

Job No. 52

Date

Direct Materials

Direct Labor

Manufacturing Overhead

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No.

Account Titles and Explanation

Debit

Credit

(1)

(2)

(3)

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No.

Account Titles and Explanation

Debit

Credit

(1)

(2)

(3)

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Account Titles and Explanation

Debit

Credit

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No.

Account Titles and Explanation

Debit

Credit

(1)

(2)

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Problem 15-1A

Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2014, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $22,400, direct labor $13,440, and manufacturing overhead $17,920. As of January 1, Job No. 49 had been completed at a cost of $100,800 and was part of finished goods inventory. There was a $16,800 balance in the Raw Materials Inventory account.

During the month of January, Deglman Manufacturing began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $136,640 and $176,960, respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $100,800 on account. 2. Incurred factory labor costs of $78,400. Of this amount $17,920 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $19,040; indirect labor $22,400; depreciation expense on equipment $21,280; and various other manufacturing overhead costs on account $17,920. 4. Assigned direct materials and direct labor to jobs as follows.

Job No.

Direct Materials

Direct Labor

50 $11,200 $5,600 51 43,680 28,000 52 33,600 22,400

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   Your answer is correct. Calculate the predetermined overhead rate for 2014, assuming Degelman Company estimates total manufacturing overhead costs of $1,097,600, direct labor costs of $844,308, and direct labor hours of 22,400 for the year. (Round answer to the nearest whole percent, e.g. 25.)
Predetermined overhead rate

130

%

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Your answer is correct. Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job No. 50.

Job No. 50

Date

Direct Materials

Direct Labor

Manufacturing Overhead

Beg. $

22400

$

13440

$

17920

Jan.

11200

5600

7280

$

33600

$

19040

$

25200

Cost of completed job    Direct materials $

33600

   Direct labor

19040

   Manufacturing overhead

25200

Total cost $

77840

Job No. 51

Date

Direct Materials

Direct Labor

Manufacturing Overhead

Jan. $

43680

$

28000

$

36400

$

43680

$

28000

$

36400

Cost of completed job    Direct materials $

43680

   Direct labor

28000

   Manufacturing overhead

36400

Total cost $

108080

Job No. 52

Date

Direct Materials

Direct Labor

Manufacturing Overhead

Jan. $

33600

$

22400

$

29120

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Your answer is correct. Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(1)

Raw Materials Inventory

100800

Accounts Payable

100800

(2)

Factory Labor

78400

Factory Wages Payable

60480

Employer Payroll Taxes Payable

17920

(3)

Manufacturing Overhead

80640

Accounts Payable

17920

Accumulated Depreciation-Equipment

21280

Raw Materials Inventory

19040

Factory Labor

22400

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Your answer is correct. Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(1)

Work in Process Inventory

88480

Raw Materials Inventory

88480

(2)

Work in Process Inventory

56000

Factory Labor

56000

(3)

Work in Process Inventory

72800

Manufacturing Overhead

72800

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Your answer is partially correct. Try again. Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Finished Goods Inventory

192640

Work in Process Inventory

192640

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   Your answer is correct. Prepare the journal entry (or entries) to record the sale of any job(s) during the month. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(1)

Cost of Goods Sold

178640

Finished Goods Inventory

178640

(To record cost of jobs.)

(2)

Accounts Receivable

313600

Sales Revenue

313600

(To record sale of jobs.)

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Your answer is correct. What is the balance in the Finished Goods Inventory account at the end of the month? What does this balance consist of?
Finished Goods Inventory $

108080

Job No. 50Job No. 51Job No. 52Jobs 50 and 51Jobs 51 and 52Jobs 50 and 52res_EAT_1351252344574_0_43458063476586406_191

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Your answer is partially correct. Try again. What is the amount of over- or underapplied overhead?
Manufacturing Overhead $

7840

OverappliedUnderappliedres_EAT_1351252344574_0_43458063476586406_200

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Explanation / Answer

Correct Entries are

Account Titles and Explanation Debit Credit Finished Goods Inventory 77840+108080 185920 Work in Process Inventory 185920