Chapter 4 Cost Accounting

Page 1
AllligDJDent:Week 4 Homework
Assignment Chp.4
IDatructor:DANI! ACHA"P#N$
Coune:Cost A.ccounting
%ook:Homgren:Cost: Accounting&1'e
(tu)ent:Leah Pasternak
Date:*+,-+14
T:bne:3:20PM
nstruction Company produces gadgets for the coveted sma appiance mar!et. The foo"ing data refects activity for
the
# ic! the icon to vie" the data.$
Construction Co.uses a norma cost system and aocates overhead to "or! in process at a rate of %3.20 per direct
manufactur abor doar.&ndirect materias are insignificant so there is no inventory account for indirect materias.
'e(uirements:
). Prepare *ournaentries to record the transactions for 200+ incuding an entry to cose out over, or underaocated
overhea- cost of goods sod..or each *ournaentry indicate the source document that "oud be used to authori/e each
entry.Aso 1 "hich subsidiary edger0if any0shoud be referenced as bac!up for the entry.
2. Post the *ournaentries to T,accounts for aof the inventories0Cost of 1oods 2od0the Manufacturing 3verhead
Contro
Account0 and the Manufacturing 3verhead Aocated Account.
A *ob,costing system has a separate *ob,cost record for each *ob.A summary of the *ob,cost record is typicay found in a
subsidiary edger.The generaedger account 4or!,in,Process Contropresents the totaof these separate *ob,cost records
pertaining to a unfinishec *obs.The *ob,cost records and 4or!,in,Process Controaccount trac! *ob costs from "hen *obs
start untithey are compete.The subsidiary edger for materias !eeps a continuous record of (uantity received0(uantity
issued to *obs0 and inventory baances for each t.pe of materia. Labor,time records are used to trace direct
manufacturing abor to individua*obs and to accumuate the indirect manufacturing abor in Manufacturing 5epartment
overhead records. The Manufacturing 5epartment overhead records that ma!e up the subsidiary edger for Manufacturing
3verhead Contro sho" detais of different categories of overhead costs such as indirect materias0indirect manufacturing
abor0supervision and engineering0pant insurance and utiities0 and pant depreciation.
'e(uirement ):
'ecord the purchase of direct materias.'ecord the purchase of direct materias.The cost of materias is an inventoriabe cost
"hich becomes part of "or!,in,process or manufacturing overhead as the materias are used in the manufacturing process.
&
6ourna7ntry
&
&
8o" "e must determine the cost of the direct materias used during the accounting period.4e !no" the beginning and
ending baances of the Materias Controaccount.4e can manipuate the formua to cacuate the ending baance of
materias contro to compute the direct materias used.
9eg.Materias nv.
/ :0)00
; Account &ncreases
; / 1,0&111
7nd.Materias nv.
/ 14&111
< 5irect materias used
2 / 1,1&111
'ecord the direct materias used.

6ourna7ntry
&
&
'ecord the direct and indirect abor payabe in a singe entry.The direct abor "ibe recorded as part of the *ob cost
through "or!,in,process0the indirect abor "i be accumuated in the Manufacturing 3verhead
Controaccount.'emember that this abor "ibe paid at a future date.
6ourna7ntry
Co
&33
$ #C
&
Accounts 5ebit Credit
41.5 Materias Contro
Accounts Payabe Contro
1,0&111
1,0&111
&
4,.5 4or!,in,Process Contro
Materias Contro
1,1&111
1,1&111
,
Page ,
AllligDJDent:Week 4 Homework
Assignment Chp.4
IDatructor:DANI! ACHA"P#N$
Coune:Cost A.ccounting
%ook:Homgren:Cost: Accounting&1'e
(tu)ent:Leah Pasternak
Date:*+,-+14
T:bne:3:20PM
&&
Accounts
5ebit &&
Credit
#3.$ 4or!,in,Process Contro
Manufacturing 3verhead Contro
4ages Payabe Contro
66&111
04&111
14,&111
'ecord the payment of the "ages.
&
6ourna7ntry
&
&
Prepare a consoidated entry to record the depreciation on factory e(uipment0the maintenance "ages on factory
e(uipment0 the prepaid factory rent e=pired and the misceaneous factory overhead payabe.'emember that indirect
costs cannot 7e easiy traced to individua *obs.Manufacturing overhead costs0therefore0are first accumuated in a
manufacturing overhead account and then aocated to individua*obs.
> 6ourna7ntry
&
8e=t "e must cacuate the manufacturing overhead costs to aocate to the *obs..irst identify the formua that Construction
Company "i use to aocate the overhead costs.
9udgeted indirect cost rate
89
:
89
Actuadirect abor costa 2 Manufacturing costa aocated
8e=t0cacuate the overhead aocated.
9udgeted
&ndirect coat rate
?
/ '.,1
?
Actuadirect
abor coats
66&111
Manufacturing
2 3verhead Aocated
2 / ,61&-11
'ecord the manufacturing overhead aocated.
r
6ourna7ntry
&
&
8o" "e must determine the cost of the goods that have been competed during the accounting period.4e !no" the
beginning and ending baances of the 4or!,in,Process account.4e can manipuate the formua to cacuate the ending
baance of
"or!,in,process to compute the amount of goods competed and transferred to finished goods.
$ @Cic! the icon for hep cacuating the increases to "or!,in,process.$
&
Account. 5ebit Credit
44.5 4ages Payabe Contro
Cash Contro
14,&111
14,&111
&
&
40.5 Manufacturing 3verhead Contro
Accumuated 5epreciation Contro
4ages Payabe Contro
Prepaid 'ent Contro
14'&411
',&111
,*&111
;&411
*0&111
&
4-.5 4or!,in,Process Contro
Manufacturing 3verhead Aocated
,61&-11
,61&-11
9eginning 4&P
/ -&611
; Account &ncreases ,
; / 46;&*11 /
7nding4&P
,1&111
.inished 1oods
&& / 4*0&011
'ecord the transfer o< competed *obs.
r
6ourna7ntry
&
&
8o" "e can cacuate the cost o< goods
sod during the accounting period.4e
!no" the beginning and ending baances
of the .inished 1oods Controaccount.
4e can manipuate the formua to
cacuate the ending baance o< finished
goods to compute the cost of goods
sod.
9e
gin
nin
g
.1
/

-
0
&
1
1
1
;
Acco
unt
ncre
aAe+
; /
4*0&
011
7n
din
g
.
1
/
,
*&
1
1
1
Coat of
1ooda
2od
2 /
01'&011
'ecord the cost of goods sod.
&
6ourna7ntry
&
&
Prepare a consoidated entry to
record the depreciation on office
e(uipment0 the commissions payabe
and the advertising payabe.

&
4*.5 .inished 1oods Contro
4or!,in,Process Contro
4*0&011
4*0&011
&
46.5 Cost o< 1oods 2od
.inished 1oods Contro
01'&011
01'&011
&
6ourna7ntry
&
.or the
finaentry0"e
need to dispose
of the over, or
underaocated
manufacturing
overhead.4e
!no" that the
over, or
underaocated
overhead is the
difference
bet"een the
manufacturing
overhead appied
and the
actuamanufactu
ring overhead.To
determine the
actuamanufacturi
ng overhead0"e
need to add the
totadebits to the
manufacturing
overhead
controaccount.
#Bse parentheses
or a minus sign
for overaocated
amounts.$
$ #Cic! the icon for
assistance cacuating
the actuamanufacturing
overhead cos)s.$
Actu
ama
nufa
cturi
ng
over
head
/
1
;*.4
11
Bnderaocated
A
o
c
a
t
e
d

m
a
n
u
f
a
c
t
u
r
i
n
g
o
v
er
h
e
a
d
#
3
v
er
a
o
c
at
e
d$
/
,61&-
11
&& /
464&,
115
5ispose of over, or
underaocated manufacturing
overhead.
&
4;.5 3ffice 5epreciation 7=pense
2aary 7=pense #2aes Commissions$
Advertising 7=pense
2aary Payabe Contro
*&611
'1&111
;4&111
*&611
'1&111
;4&111
&
r
6ourna7ntry
&
&
There are various source documents that initiate transactions in a *ob cost accounting system.Transactions reated to
materias inventory are supported by invoices and materias re(uisitions forms.Labor,time records are used to trace
direct manufacturing abor to individua*obs and to accumuate the indirect manufacturing abor in Manufacturing
5epartment
overhead records.The source documents for manufacturing overhead entries incude invoices #for e=ampe0 a utiity bi$ and
specia schedues #for e=ampe0a fi?ed asset depreciation schedue$ from the responsibe accounting officer.
'e(uirement ,:
Post entries 41.5 through 4-.5 to the accounts beo".#3ny compete the necessary ans"er bo=es.$
$ #Cic! the icon to vie" the
*ournaentries.$
Materias Contro
4or!,&n,Process
Contro
9a. ;&111 4,5
415 1,0&111
CC
1,1&111 9a. -&611
...
4,5 1,1&111
....
4'5 66&111
#D$
...
,61&-11
88
Manufacturing 3verhead
Contro
#3$ 04&111
... .&
405 14'&411
Manufacturing 3verhead
Aocated
) 465 = ,61.611.
Post entries 4*.5 through 411.5 to the accounts beo". #3ny compete the necessary ans"er bo=es.$
$ #Cic! the icon to vie" the *ournaentries.$
Materias 4or!,n,Proceu Manufacturing
Contro Contro 3verhead Contro
9a. ;&111 4,5 1,1&111 9a. -&611 4*5 4*0&011 4'5 04&111
.... ....
415 1,0&111 #2$ 1,1&111 405 14'&411 4115 1;*&411
#3$ 66&111
#D$ ,61&-11
Manufacturing
3verhead Aocated .inished 1oods Cost of 1oods 2od
&
411.5 Manufacturing 3verhead Aocated
Cost of 1oods 2od
,61&-11
....
1;*&411
...
64&,11
4115:,61&-11:1 4-5 . ,61&-11 9a.
sE.ooo ) #+$ :
01'&011
88
CC) 4115 64&,11
(tu)ent: !eah Pasternak
Date: *+,-+14
>ime: ':,1P"
Instructor: DANI! ACHA"P#N$
Course: Cost Accounting
%ook: Homgren: Cost Accounting& 1'e
Assignment: Week 4 Homework
Assignment Chp. 4
#F$
4*0&011 465 01'&011
.inay0 cacuate the ending baance in each account. #.or accounts "ith a /1 baance0 eave the baance ces ban!.$
9a.
#)$
Materias
Contro
;&111 4,5
1,0&111
4or!,in,Process
Contro
1,1&111 9a. -&611 4*5 4*0&011
4,5 1,1&111
4'5 66&111
4-5 ,61&-11
#3$
#E$
Manufacturing
3verhead Contro
04&111 4115 1;*&411
14'&411
9a. 14&111
9a. ,1&111 9a.
Manufacturing
3verhead Aocated .inished 1oods Cost o< 1oods 2od
4115 ,61&-11 4-5 ,61&-11 9a. -0&111 465 01'&011 465 01'&011 4115 64&,11
4*5 4*0&011
9a. 9a. ,*&111 9a.. 4,;&'11
5ata Tabe
Costs incurred:
Purchases of direct materias #net$ on credit /1,0&111
5irect manufacturing abor cost 66&111
&ndirect abor 04&111
5epreciation0 factory e(uipment ',&111
5epreciation0 office e(uipment *&611
Maintenance0 factory e(uipment #"ages$ ,*&111
Misceaneous factory overhead ;&411
'ent0 factory buiding *0&111
Advertising e=pense ;4&111
2aes commissions #saary$ '1&111
&nventories: 6anuary )0 200+ 5ecember 3)0200+
5irect materias
4or! in process
.inished goods
/ ;&111 /
-&611
-0&111
14&111
,1&111
,*&111
'eference
5irect materias used
5irect abor
/1,1&111
; 66&111
Date: *+,-+14
>ime: ':,1P"
Assignment Chp. 4
Page(
Page-
Manufacturing overhead aocated
;
&ncreases to "or!,in,process
2+)0D00
'eference
&ndirect abor %EG0000
Harious manufacturing overhead costs ; )G30G00
Actua manufacturing overhead
'eference
#).$ Materias Contro
)2E0000
)2E0000
Materias Contro
)200)00
)200)00
Cash Contro
++0000
EG0000
)G20000
#G.$ 4ages Payabe Contro
Cash Contro
)G20000
)G20000
#E.$ Manufacturing 3verhead Contro
4ages Payabe Contro
Prepaid 'ent Contro
)G30G00
2F0000
:0G00
320000
FE0000
#D.$
&
2+)0D00
2+)0D00
'eference
#F$ .inished 1oods Contro
GFE0E00
GFE0E00
#+.$ Cost of 1oods 2od
E)30E00
E)30E00
#:.$ 3ffice 5epreciation 7=pense
Advertising 7=pense
4ages Payabe Contro
F0+00
3)0000
:G0000
3)0000
:G0000
F0+00
#)0.$ Manufacturing 3verhead Aocated 2+)0D00
(tu)ent: !eah Pasternak Instructor: DANI! ACHA"P#N$ Assignment: Week 4 Homework
Page?
Date: 7/26/14
>ime: ':,1P"
Assignment Chp. 4
Manufacturing
3verhead
Contro
Cost o< 1oods
2od
&
6ourna 7nby
&
I3B
A82
47'
75:
&
6ourna 7nby
&
&
6ourna7nby
&
&
6ourna7nby
9udgeted
direct costs
&
Accounts 5ebit
(1.)
Cash Contro
Materias Contro
125000
nothing
&
Accounts 5ebit
(2.) Cost of 1oods 2od
120100
nothing
&
Accounts 5ebit
(3.) 4age 7=pense
2aary 7=pense
4ages Payabe Contro
88000
EG000
nothing
&
Accounts 5ebit
#E.$ Prepaid 'ent Contro
4ages Payabe Contro
75000
32000
27000
9400
nothing
(tu)ent: !eah Pasternak Instructor: DANI! ACHA"P#N$ Assignment: Week 4 Homework
Page?
;
Actua direct
abor costs
2
Manufacturf)
&
6ourna
7nby
&
9e
gin
nin
g
4&
P
D
+
0
0
;
;
2
.
i
n
i
s
h
e
d

1
o
o
d
s
2
1
8
7
1
0
0
&
Accounts 5ebit
(6.) Manufacturing 3verhead Contro
281600
nothing
Date: FJ2DJ)G
>ime: ':,1P"
Assignment Chp. 4
Page(
&
6ourna7ntry
&
Actuamanufacturing overhead
)G3G00
Bnde
Aocated manufacturing overhead K #3ve)
2+)D00 =
&
6ourna7ntry
&
4or!,in,Process
Materias Contro Contro
9a. :0)00 #)$ )G000 9a. D0+00 #3$ GFEE00
#)$ )20)00 not... nothing #2$ ++000
no... nothing #3$ 3+0F00
not... nothing
not... nothing
Manufacturing 3verhead Manufacturing 3verhead
Contro Aocated
#G$ nothing not... nothing not... nothing no... nothing
no... nothing no... nothing
no... nothing
Materias 4or!,in,Process
Contro Contro
9a. :0)00 #2$ )200)00 9a. D0+00 #F$ nothing #3$ EG0000 n...
#)$ )2E0000 n... nothing #2$ )200)00 n... nothing #E$ )G30G00 n...
no... nothing #3$ ++0000 n... nothing
#D$ 2+)0D00
not... nothing
&
Accounts 5ebit
#:.$
&
3ffice 5epreciation 7=pense
Advertising 7=pense
nothing
nothing
3:+00
3)000
:G000
nothing
nothing
nothing
&
Accounts 5ebit
#)0.$ Manufacturing 3verhead Aocated
Cash Contro
):FG00
+G200
nothing
Page;
Manufacturing
3verhead Aocated .inished 1oods Cost of 1oods
#F$ ):FG00 #D$ 2+)0D00 9a. DE0000 #F$ 2)000 #:$ ):FG00 #)0$
(8) +G200 #F$ nothing #F$ GFEE00 #)0$ nothing #+$ E)3E00 #+$
#:$ nothing
Materias 4or!,in,Process Manufacturin-
Contro Contro 3verhead Cont
9a. :0)00 #2$ )200)00 9a. D0+00 #F$ GFE0E00 #3$ EG0000 #)0$
#)$ )2E0000 #2$ )200)00 #E$ )G30G00
#3$ ++0000
#D$ 2+)0D00
9a. )G000 nothing 9a. nothing GFEE00 9a. ):FG00
Manufacturing
3verhead Aocated .inished 1oods Cost of 1oods
#)0$ 2+)0D00 #D$ 2+)0D00 9a. DE0000 #+$ E)30E00 #+$ E)30E00 #)0
#F$ GFE0E00
9a. 2+)D00 nothing 9a. nothing E)3E00 9a.. nothing
Costs incurred:
Purchases of direct materias #net$ on credit %)2E0000
5irect manufacturing abor cost ++0000
&ndirect abor EG0000
5epreciation0 factory e(uipment 320000
5epreciation0 office e(uipment F0+00
Maintenance0 factory e(uipment #"ages$ 2F0000
Misceaneous factory overhead :0G00
'ent0 factory buiding FE0000
Advertising e=pense :G0000
2aes commissions #saary$ 3)0000
&nventories: 6anuary )0200+ 5ecember 3)0 200+
5irect materias % :0)00 % )G0000
4or! in process D0+00 2)0000
.inished goods DE0000 2F0000

Chapter 4 Cost Accounting

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 4 Cost Accounting

Uploaded by

Copyright:

Available Formats

Page 1

You might also like