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Manufacturing cost data for Sage Hill Company are presented as follows.
Determine the missing amount for each letter (a) through (i).
Case A Case B Case C
Direct materials
used
$ (a) $60,300 $114,400
Direct labor 50,000 75,600 (g)
Manufacturing
overhead
40,800 71,700 89,600
Total
manufacturing
costs
172,100 (d) 223,000
Work in process
1/1/22
(b) 25,200 (h)
Total cost of work
in process
194,800 (e) 296,400
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Work in process
12/31/22
(c) 9,600 61,600
Cost of goods
manufactured
163,020 (f) (i)
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The following information is available for Metlock Company.
April 1 April 30
Raw materials inventory $8,600 $12,100
Work in process inventory 4,300 3,100
Materials purchased in April $84,400
Direct labor in April 68,800
Manufacturing overhead in April 137,600
Prepare the cost of goods manufactured schedule for the month of April 2022. (Assume that all raw materials used were direct
materials.)
METLOCK COMPANY
Cost of Goods Manufactured Schedule
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$
$
:
$
:
$
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Don Lieberman and Associates, a CPA �rm, 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 worked on during November..
Oriole Inc. Pharoah Inc. Sheridan Inc.
Direct materials $710 $440 $310
Auditor labor costs $5,900 $7,700 $4,375
Auditor hours 77 89 50
Overhead costs are applied to jobs on the basis of auditor hours, and the predetermined overhead rate is $51 per auditor hour.
The Oriole Inc. job is the only incomplete job at the end of November. Actual overhead for the month was $13,600.
(a) Determine the cost of each job.
Cost
Oriole $
Pharoah $
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Sheridan $
(b) Indicate the balance of the Service Contracts in Process account at the end of November.
Balance in service contracts in process account $
(c) Calculate the ending balance of the Operating Overhead account for November.
Balance in operating overhead account $
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Oriole Company has the following production data for March 2022: no beginning work in process, units started and completed
33,000, and ending work in process 5,500 units that are 100% complete for materials and 40% complete for conversion costs.
Oriole uses the FIFO method to compute equivalent units. If unit materials cost is $5 and unit conversion cost is $9, determine the
costs to be assigned to the units completed and transferred out and the units in ending work in process. The total costs to be
assigned are $509,300.
Completed and transferred out $
Ending work in process $
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In January, Oriole Company requisitions raw materials for production as follows: Job 1 $800, Job 2 $1,040, Job 3 $600, and
general factory use $520. During January, time tickets show that the factory labor of $5,280 was used as follows: Job 1 $1,920,
Job 2 $1,400, Job 3 $1,240, and general factory use $720.
Prepare the job cost sheets for each of the three jobs.
Job 1
Date Direct Materials Direct Labor
1/31
Job 2
Date Direct Materials Direct Labor
1/31
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Job 3
Date Direct Materials Direct Labor
1/31
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(a)
Sheridan Inc. has beginning work in process $29,300, direct materials used $273,600, direct labor $250,800, total manufacturing
overhead $205,200, and ending work in process $35,800.
What is the total cost of work in process?
Total cost of work in process $
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(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Pharoah Company completes and transfers out 10,800 units and has 1,800 units of ending work in process that are 25% complete
as to conversion costs. Materials are entered at the beginning of the process, and there is no beginning work in process. Pharoah
uses the FIFO method to compute equivalent units. Assuming unit materials costs of $3 and unit conversion costs of $7, what are
the costs to be assigned to units (a) completed and transferred out and (b) in ending work in process?
Costs to be assigned
(a) Completed and transferred out $
(b) Ending work in process $
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At Crane Company, there are 820 units of ending work in process that are 100% complete as to materials and 40% complete as to
conversion costs. If the unit cost of materials is $3 and the total costs assigned to the 820 units is $5,740, what is the per unit
conversion cost? (Round answer to 2 decimal places, e.g. 2.25.)
Per unit conversion cost $
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The Smelting Department of Carla Vista Company has the following production data for November.
Beginning work in process 2,360 units that are 100% complete as to materials and 20% complete as to conversion costs; units
completed and transferred out 10,620 units; and ending work in process 8,260 units that are 100% complete as to materials
and 40% complete as to conversion costs.
Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of November.
Materials Conversion Costs
Total equivalent units
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(a)
In March, Sandhill Company had the following unit production costs: materials $12 and conversion costs $10. On March 1, it had
no work in process. During March, Sandhill completed and transferred out 25,600 units. As of March 31, 5,200 units that
were 40% complete as to conversion costs and 100% complete as to materials were in ending work in process.
Compute the total units to be accounted for.
Total units
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(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Pharoah Company had zero units of beginning work in process. During the period, 8,100 units were completed and transferred
out, and there were 530 units of ending work in process. How many units were started into production?
Units started into production units
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An incomplete cost of goods manufactured schedule is presented here.
Complete the cost of goods manufactured schedule for Splish Brothers Company. (Assume that all raw materials used were direct
materials.)
SPLISH BROTHERS COMPANY
Cost of Goods Manufactured Schedule
For the Year Ended December 31, 2022
Work in process, January 1
Direct materials
Raw materials inventory, January 1 $
Raw materials purchases 148,800
Total raw materials available for use
Less: Raw materials inventory, December 31 21,500
Direct materials used $169,200
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Direct labor
Manufacturing overhead
Indirect labor 17,200
Factory depreciation 33,700
Factory utilities 64,200
Total manufacturing overhead 115,100
Total manufacturing costs
Total cost of work in process
Less: Work in process, December 31
Cost of goods manufactured
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During the current month, Sheridan Company incurs the following manufacturing costs.
(a) Purchased raw materials of $21,200 on account.
(b) Incurred factory labor of $45,600.
(c) Factory utilities of $3,290 are payable, prepaid factory insurance of $3,010 have expired, and depreciation on the
factory building is $11,000.
Prepare journal entries for each type of manufacturing cost. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation Debit Credit
(a)
(Purchases of raw materials on account)
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(b)
(To record factory labor costs)
(c)
(To record overhead costs)
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(a1)
The following are incomplete manufacturing cost data.
Determine the missing amounts for these three independent situations.
Direct
Materials Used
Direct
Labor
Manufacturing
Overhead
Total
Manufacturing
Costs
(1) $37,600 $57,200 $47,000 $
(2) $ $70,500 $131,600 $278,800
(3) $51,700 $ $104,200 $291,400
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(a2)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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During the �rst quarter, Wildhorse Company incurs the following direct labor costs: January $48,800, February $36,600, and
March $61,000.
For each month, prepare the entry to assign overhead to production using a predetermined rate of 70% of direct labor cost. (List
all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.
Record journal entries in the order presented in the problem.)
Date Account Titles and Explanation Debit Credit
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Blossom Company estimates that annual manufacturing overhead costs will be $1,240,000. Estimated annual operating activity
bases are direct labor cost $620,000, direct labor hours 62,000, and machine hours 124,000.
Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50% or 10.50.)
Overhead rate per direct labor cost %
Overhead rate per direct labor hour $
Overhead rate per machine hour $
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A job order cost sheet for Cullumber Company is shown below.
Job No. 92 For 2,000 Units
Date
Direct
Materials
Direct
Labor
Manufacturing
Overhead
Beg. bal. Jan. 1 5,900 7,000 4,900
8 7,000
12 8,000 6,000
25 2,400
27 4,000 3,000
15,300 19,000 13,900
Cost of completed job:
Direct materials $15,300
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Direct labor 19,000
Manufacturing overhead 13,900
Total cost $48,200
Unit cost ($48,200 ÷ 2,000) $24.10
(a) On the basis of this data, answer the following questions.
(1) What was the balance in Work in Process Inventory on January 1 if this was the only un�nished job?
Balance in Work in Process Inventory on January 1 $
(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? (Round
answers to 0 decimal places, e.g. 55%.)
Last year Current year
Overhead rate % %
(b) Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92. (List all debit entries
before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
221 Exam 2 Ch 19-21
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Jan.
31
(To record raw materials used)
31
(To record factory labor used)
31
(To record manufacturing overhead)
31
(To record job completed)
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Production costs of the Finishing Department in June in Sheridan Company are materials $13,680, labor $33,630, and overhead
$20,520. Equivalent units of production are materials 22,800 and conversion costs 18,050.
Compute the unit costs for materials and conversion costs for June. (Round answers to 2 decimal places, e.g. 2.25.)
Materials cost per unit $
Conversion cost per unit $
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Tamarisk Express reports the following costs and expenses in June 2022 for its delivery service.
Indirect materials used $6,160 Drivers’ salaries $15,360
Depreciation on delivery equipment 10,720 Advertising 4,480
Dispatcher’s salary 4,800 Delivery equipment repairs 288
Property taxes on of�ce building 860 Of�ce supplies 624
CEO’s salary 11,520 Of�ce utilities 960
Gas and oil for delivery trucks 2,080 Repairs on of�ce equipment 182
Determine the total amount of (a) delivery service (product) costs and (b) period costs.
Delivery service (product) costs $
Period costs $
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Sandhill Engineering Contractors incurred employee payroll costs of $43,200 ($33,600 direct and $9,600 indirect) on an
engineering project. The company applies overhead at a rate of 25% of direct labor cost.
Record the entries to assign payroll liabilities and to apply overhead. (List all debit entries before credit entries. Credit account titles
are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
(To record service salary and wages)
(To record the applied overhead)
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