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 22,400Warning
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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 labor19040
Manufacturing overhead25200
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 labor28000
Manufacturing overhead36400
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.)Warning
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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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Account Titles and Explanation Debit Credit Finished Goods Inventory 77840+108080 185920 Work in Process Inventory 185920