ACC 212 JOB COST ACCOUNTING SYSTEMCOST FLOW AND ASSOCIATED J

ACC 212 JOB COST ACCOUNTING SYSTEM-COST FLOW AND ASSOCIATED JOURNAL ENTRIES Below is a flowchart showing the fow of manufacturing costs. You can see that some of the dollar amounts within the flowchart have been left blank s at the top. matonais sic) $151,000 Oter overhead costs Factory ovehead applied $68,100 process $17. 400 Finished goods 304 400

Solution

a Raw materials available for production Beginning raw materials 10000 Add: purchases 159000 Raw materials available for production 169000 b Raw materials available for production 169000 Less: Ending raw materials 9500 Materials used in production 159500 c Materials used in production 159500 Less: direct materials used in production 151000 Indirect materials used 8500 d Indirect materials used 8500 Indirect labor cost 27000 Other overhead costs 34300 Total actual OH incurred 69800 e Beginning WIP 17250 Direct materials used 151000 Direct labor used 50850 Factory oh applied 68100 Total cost of WIP 287200 Less: ending WIP 17400 f Finished goods manufactured 269800 g Finished goods available for sale 304400 Less: finished goods manf 269800 beginning finished goods 34600 h Finished goods available for sale 304400 Less: cost of goods sold 248400 Ending finished goods 56000 Income statement Sales 425789 Cost of goods sold 248400 Gross profit 177389 Operating expenses Selling expenses 25786 Adm expenses 65345 Total operating expenses 91131 Net income 86258 Retained earnings 53318 Net income 86258 Retained earnings, Dec 31 139576 Cash 18642 Accounts receivable 27108 Inventories Raw material 9500 WIP 17400 Finished goods 56000 82900 Equipment 359000 Less: acc dep 24150 334850 Total assets 463500 Liabilities Accounts payable 13107 Notes payable 124350 Total liabilities 137457 Stockholders equity Paid in capital Common stock 30000 paid in capital in excess of par 156467 Total paid in capital 186467 retained earnings 139576 Total stockholders equity 326043 Total liabilities and stockholders equity 463500