Noblesacctg10ppt19 150126092429 Conversion Gate02

Job Order
Costing
Chapter 19
Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-1

Learning Objectives
1. Distinguish between job order
costing and process costing
2. Record materials and labor
costs in a job order costing
system
3. Calculate the predetermined
overhead allocation rate and
allocate overhead costs

Learning Objectives
4. Record the completion and
sales of finished goods
5. Adjust for overallocated and
underallocated overhead
6. Calculate job costs for a service
company

Learning Objective 1
Distinguish between
job order costing and
process costing

Knowing the Cost of One Unit of
Product Helps Managers to:
Set selling prices that will lead to profits
Compute cost of goods sold for the
income statement
Compute the cost of inventory for the
balance sheet

Examples of Unit Costs

Costing Systems

Four-Step Method to Track
Product Costs
1. Accumulate
2. Assign
3. Allocate
4. Adjust

Would the following companies most likely use
job order costing or process costing?
1. Paint manufacturer
2. Print shop
3. Caterer
4. Soft drink bottler
5. Yacht builder

1. Paint manufacturer Process costing
2. Print shop
3. Caterer
5. Yacht builder

2. Print shop Job order costing
3. Caterer
5. Yacht builder

3. Caterer Job order costing
5. Yacht builder

4. Soft drink bottler Process costing
5. Yacht builder

4. Soft drink bottler Process costing
5. Yacht builder Job order costing

Record materials and

labor costs in a job
order costing system

Flow of Product Costs in Job
Order Costing
Exhibit
Exhibit19-2
19-2Flow
Flowof
ofProduct
ProductCosts
Costsin
inJob
JobOrder
OrderCosting
Costing
Job
JobCost
CostRecord
Record
Job
Job2727
Direct
DirectMaterials
Materials
Direct
DirectLabor
Labor
Manufacturing
ManufacturingOverhead
Overhead
Job
JobCost
CostRecord
Record
Job
Job2828
Direct
DirectMaterials
Materials
Direct
DirectLabor
Labor
Manufacturing
Overhead
Job Product costs

JobCost
CostRecord
Record
Job for each job are
Job2929
Direct recorded on
DirectMaterials
Materials
Direct individual job cost
DirectLabor
Labor
Manufacturing records
Overhead

Order Costing
Exhibit
Exhibit19-2
19-2Flow
Flowof
ofProduct
ProductCosts
Costsin
inJob
JobOrder
OrderCosting
Costing
BALANCE SHEET
Work-in-Process Inventory Finished Goods Inventory

Job
JobCost
CostRecord
Record
Job
Job2727 Costs Incurred
Direct Job 27
DirectMaterials
Materials
Direct Job 28
DirectLabor
Labor Job 29
Manufacturing
Overhead
Job
JobCost
CostRecord
Record
Job
Job2828 Costs incurred for each job are
Direct
DirectMaterials
Materials added to WIP with debits
Direct
DirectLabor
Labor
Manufacturing
Overhead
Job Product costs

JobCost
CostRecord
Record
Job2929
Direct recorded on
DirectMaterials
Materials
DirectLabor
Labor
Overhead

Flow of Product Costs in Job Order
Costing
Exhibit
Exhibit19-2
19-2Flow
Flowof
ofProduct
ProductCosts
Costsin
inJob
JobOrder
OrderCosting
Costing
BALANCE SHEET

Job
JobCost
CostRecord
Record
Job COGM
Job2727 Costs Incurred COGM
Direct Job 27 Job 27 Job 27
DirectMaterials
Materials
DirectLabor
Labor Job 29
Manufacturing
Overhead
Job When the job is completed,

JobCost
CostRecord
Record the costs are transferred out
Job
of WIP with a credit and
Direct
DirectMaterials
transferred into FG with a debit.
Direct
DirectLabor
Labor This amount is
Manufacturing
Overhead called the jobs Cost of Goods
Manufactured (COGM)
Job Product costs
JobCost
CostRecord
Record
Job2929
Direct recorded on
DirectMaterials
Materials
DirectLabor
Labor
Overhead

Flow of Product Costs in Job Order
Costing
Exhibit
Exhibit19-2
19-2Flow
Flowof
ofProduct
ProductCosts
Costsin
inJob
JobOrder
OrderCosting
Costing
BALANCE SHEET INCOME STATEMENT
Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold

Job
JobCost
CostRecord
Record
Job COGM COGS COGS
Direct Job 27 Job 27 Job 27 Job 27 Job 27
DirectMaterials
Materials
DirectLabor
Labor Job 29
Manufacturing
Overhead
Job When the job is completed, When

When the
the job
job is
is sold,
JobCost
CostRecord
Record the costs are transferred out
sold,
Job the
the costs are transferred out
costs are transferred
of WIP with a credit and
out
Direct of
of FG
FG with
with aa credit
credit and
DirectMaterials
transferred into FG with a debit.
and
Direct transferred
transferred into
into COGS
DirectLabor
Labor This amount is
COGS
Manufacturing with a debit.
Overhead called the jobs Cost of Goods
with a debit.
This
This amount
amount is is the
the jobs
jobs
Manufactured (COGM) Cost
Cost of Goods Sold (COGS).
of Goods Sold (COGS).
Job Product costs
JobCost
CostRecord
Record
Job2929
Direct recorded on
DirectMaterials
Materials
DirectLabor
Labor
Overhead

Purchasing Materials
Transaction 1Materials Purchased: During 2016,
Smart Touch purchased raw materials of $367,000 on
account.
A L + E
=
Raw Materials Inventory

Bal. 70,000

Purchasing Materials
Transaction 1Materials Purchased: During 2016,
Smart Touch purchased raw materials of $367,000 on
account.
A L + E
=
RM A/P
Raw Materials Inventory

Bal. 70,000
Trans. 1 367,000

Raw Materials Subsidiary Ledger

Materials Requisition

Job Cost RecordDirect
Materials Recorded

Using Materials
Transaction 2Materials Used: In 2016, Smart
Touch used direct materials costing $355,000 and
indirect materials of $17,000.
A L + E
=
Raw Materials Inventory Work-in-Process Inventory

Bal. 70,000 Bal. 80,000
Trans. 1 367,000

Using Materials
Transaction 2Materials Used: In 2016, Smart
Touch used direct materials costing $355,000 and
indirect materials of $17,000.
A L + E
RM = MOH
WIP
Raw Materials Inventory Work-in-Process Inventory

Bal. 70,000 Bal. 80,000
Direct materials
Trans. 1 367,000 Trans. 2 372,000 Trans. 2 355,000
$355,000
Manufacturing Overhead
Indirect materials Trans. 2 17,000
$17,000

Job Cost RecordDirect
Labor Recorded

Labor Costs Incurred
Transaction 3Labor Costs Incurred: During 2016, Smart
Touch incurred total labor costs of $197,000, of which $169,000
was direct labor and $28,000 was indirect labor.
A L + E
=
Work-in-Process Inventory
Bal. 80,000
Trans. 2 355,000
Trans. 2 17,000

Labor Costs Incurred
Transaction 3Labor Costs Incurred: During 2016, Smart
Touch incurred total labor costs of $197,000, of which $169,000
was direct labor and $28,000 was indirect labor.
A L + E
WIP = Wages MOH
Pay
Wages Payable Work-in-Process Inventory

Trans. 3 197,000 Bal. 80,000
Trans. 2 355,000
Direct labor
Trans. 3 169,000
$169,000
Trans. 2 17,000
Indirect labor
Trans. 3 28,000
$28,000

Record the following journal entries for Smith
Company:
6. Purchased materials on account, $10,000

Company:
6.Purchased materials on account, $10,000
Raw Materials Inventory 10,000

Accounts Payable 10,000

Company:
7.Used $6,000 in direct materials and $500 in
indirect materials in production.

Company:
7.Used $6,000 in direct materials and $500 in
indirect materials in production.
Work in Process Inventory 6,000

Manufacturing Overhead 500
Raw Materials Inventory 6,500

Company:
8.Incurred $8,000 in labor costs, of which 80% was
direct labor.

Company:
8.Incurred $8,000 in labor costs, of which 80% was
direct labor.
Work in Process Inventory 6,400

Manufacturing Overhead 1,600
Wages Payable 8,000

Calculate the
predetermined
overhead allocation
rate and allocate
overhead costs

Actual Overhead Costs Incurred
Transaction 4Actual Overhead Costs Incurred:
Depreciation on manufacturing plant and equipment, $20,000.
A L + E
=
Trans. 2 17,000
Trans. 3 28,000

Depreciation on manufacturing plant and equipment, $20,000.
A L + E
Accum = MOH
Depr
Trans. 2 17,000
Trans. 3 28,000
Trans. 4 20,000

Plant utilities, $7,000.
A L + E
=
Trans. 2 17,000
Trans. 3 28,000
Trans. 4 20,000

Paid $7,000 for plant utilities.
A L + E
Cash = MOH
Trans. 2 17,000
Trans. 3 28,000
Trans. 4 20,000
Trans. 5 7,000

Plant insurance, $6,000 (previously paid).
A L + E
=
Trans. 2 17,000
Trans. 3 28,000
Trans. 4 20,000
Trans. 5 7,000

Plant insurance, $6,000 (previously paid).
A L + E
Prepaid = MOH
Ins
Trans. 2 17,000
Trans. 3 28,000
Trans. 4 20,000
Trans. 5 7,000
Trans. 6 6,000

Plant property taxes incurred but not yet paid, $5,000.
A L + E
=
Trans. 2 17,000
Trans. 3 28,000
Trans. 4 20,000
Trans. 5 7,000
Trans. 6 6,000

Plant property taxes incurred but not yet paid, $5,000.
A L + E
= Prop Tax MOH
Pay
Trans. 2 17,000
Trans. 3 28,000
Trans. 4 20,000
Trans. 5 7,000
Trans. 6 6,000
Trans. 7 5,000
Bal 83,000

Steps for Allocating Overhead Costs
1. Calculating the predetermined overhead

rate before the period
2. Allocating overhead during the period
3. Adjusting overhead at the end of the
period

Predetermined Overhead
Allocation Rate
Total estimated overhead costs

Total estimated quantity of the overhead allocation base

Traditional Cost Drivers
Direct labor hours (for labor-intensive production
environments)
Direct labor cost (for labor-intensive production

environments)
Machine hours (for machine-intensive production

environments)

Allocation Rate
At the end of 2015, Smart Touch estimated that
total overhead costs for 2016 would be $68,000
and direct labor cost would total $170,000.

Allocation Rate
At the end of 2015, Smart Touch estimated that
total overhead costs for 2016 would be $68,000
and direct labor cost would total $170,000.
Total estimated overhead costs

Total estimated quantity of the overhead allocation base
$ 68,000
$170,000
= 0.40 = 40%

Allocating Overhead
Actual Quantity
Allocated Predetermined
of the Allocation
Manufacturing = Overhead
Base Used by
Overhead Cost Allocation Rate
Each Job

Allocating Overhead
Smart Touch Learnings total direct labor cost

for Job 27 was $1,250. How much overhead
should be allocated to Job 27?

Allocating Overhead
Smart Touch Learnings total direct labor cost

for Job 27 was $1,250. How much overhead
should be allocated to Job 27?
Actual Quantity
Allocated Predetermined
of the Allocation
Manufacturing = Overhead
Base Used by
Overhead Cost Allocation Rate
Each Job
= 40% $1,250
= $500
Job Cost RecordCompleted
Cost of goods manufactured

Cost of goods manufactured
Total units produced
Total units produced
$4,500
$4,500
15 tablets
15 tablets
= $300 per tablet
= $300 per tablet

Overhead Allocation
Transaction 8Overhead Allocation: Smart Touchs total
direct labor cost for 2016 was $169,000. Overhead was
allocated based on direct labor cost.
A L + E
=

Overhead Allocation
Transaction 8Overhead Allocation: Smart Touchs total
direct labor cost for 2016 was $169,000. Overhead was
allocated based on direct labor cost.
A L + E
WIP = MOH
Manufacturing Overhead Work-in-Process Inventory

Trans. 2 17,000 Trans. 8 67,600 Bal. 80,000
Trans. 3 28,000 Trans. 2 355,000
Trans. 4 20,000 Overhead Trans. 3 169,000
Trans. 5 7,000 Allocated Trans. 8 67,600
Trans. 6 6,000 40% $169,000
Trans. 7 5,000
Bal 15,400

Smith Company expected to incur $10,000 in
manufacturing overhead costs and use 4,000
machine hours for the year. Actual manu-
facturing overhead was $9,700 and the
company used 4,250 machine hours.

9. Calculate the predetermined overhead
allocation rate using machine hours as the
allocation base.

allocation rate using machine hours as the
allocation base.
$10,000
4,000 machine hours
$2.50 per machine hour

10. How much manufacturing overhead was
allocated during the year?

10. How much manufacturing overhead was
allocated during the year?
$2.50 per machine hour 4,250 machine hours
= $10,625

Record the completion

and sales of finished
goods

Order Costing
Exhibit
Exhibit19-8
19-8Flow
Flowof
ofProduct
ProductCosts
Costsfor
forJobs
Jobs27,
27,28,
28,and
and29
29

Job
JobCost
CostRecord
Record
Job COGM COGS COGS
Direct Job 27 Job 27 Job 27 Job 27 Job 27
DirectMaterials
Materials
Direct
DirectLabor
Labor 4,500 4,500 4,500 4,500 4,500
Manufacturing
Overhead Job 28 Job 28 Job 28 Bal
6,000 6,000 6,000 4,500

Job
JobCost
CostRecord
Record Job 29 BalWhen the job is completed, When
Job When the
the job
job isis sold,
sold,
Job2828 the costs are transferred out the
Direct Costs incurred for each job are the costs
costs are
are transferred
transferred out out
DirectMaterials
Materials 3,300 6,000of WIP with a credit and
of
Direct Bal added to WIP with debits of FG
FG with
with aa credit
credit andand
DirectLabor
Labor transferred into FG with a debit. transferred
Manufacturing transferred into
into COGS
COGS
Overhead This amount is with
3,300 with aa debit.
debit.
called the jobs Cost of Goods This
This amount
amount is is the
the jobs
jobs
Manufactured (COGM) Cost
Cost ofof Goods
Goods SoldSold (COGS).
(COGS).
Job Product costs
JobCost
CostRecord
Record
Job2929
Direct recorded on
DirectMaterials
Materials
DirectLabor
Labor
Overhead

Jobs Completed
Transaction 9Jobs Completed: The $644,600 Cost of
Goods Manufactured is the cost of all jobs Smart Touch
completed during 2016.
A L + E
=

Jobs Completed
Transaction 9Jobs Completed: The $644,600 Cost of
Goods Manufactured is the cost of all jobs Smart Touch
completed during 2016.
A L + E
FG =
WIP

Bal. 80,000 Bal. 0
Trans. 2 355,000 Trans. 9 644,600 Cost of Goods Trans. 9 644,600
Manufactured
Trans. 3 169,000
Trans. 8 67,600

Jobs Sold
Transaction 10Jobs Sold: During 2016, sales on account
were $1,200,000.
A L + E
=

Jobs Sold
Transaction 10Jobs Sold: During 2016, sales on account
were $1,200,000
A L + E
A/R = Sales

Cost of Jobs Sold
Transaction 11Cost of Jobs Sold: The cost of all jobs that
Smart Touch sold during 2016 was $584,600.
A L + E
=

Cost of Jobs Sold
Transaction 11Cost of Jobs Sold: The cost of all jobs that
Smart Touch sold during 2016 was $584,600.
A L + E
FG = COGS
Finished Goods Inventory Cost of Goods Sold

Bal. 0 Trans. 11 584,600
Trans. 9 644,600 Trans. 11 584,600 Cost of Goods
Sold

Summary of the Completion and
Sale of Jobs

Costs Incurred COGM COGM COGS COGS
Bal. 80,000 Bal. Trans. 11
Trans. 2 355,000 Trans. 9 644,600
0 584,600
Trans. 3 169,000
Trans. 9 Trans. 11
Trans. 8 67,600
Bal. 27,000 644,600 584,600
Bal.
60,000

The following information pertains to Smith
Company, which you worked with previously in
this chapter:
11.Smith Company completed jobs that cost
$25,000 to manufacture. Record the journal entry.

Company, which you worked with previously in
this chapter:
11.Smith Company completed jobs that cost
$25,000 to manufacture. Record the journal entry.
Finished Goods Inventory 25,000

Work-in-Process Inventory 25,000

12. Smith Company sold jobs to customers on
account for $52,000 that cost $22,000 to
manufacture. Record the journal entries.

12. Smith Company sold jobs to customers on
account for $52,000 that cost $22,000 to
manufacture. Record the journal entries.
Accounts Receivable 52,000

Sales Revenues 52,000
Cost of Goods Sold 22,000
Finished Goods Inventory 22,000

Adjust for
overallocated and
underallocated
overhead

Manufacturing Overhead Balance
Trans. 2 17,000 Trans. 8 67,600 Allocated costs
Trans. 3 28,000
Actual costs Trans. 4 20,000
$83,000 Trans. 5 7,000
Trans. 6 6,000
Trans. 7 5,000
Bal. 15,400

Adjusting Manufacturing Overhead
Transaction 12Adjusting Manufacturing Overhead: At the
end of 2016, the Manufacturing Overhead account is closed.
A L + E
=

Adjusting Manufacturing Overhead
Transaction 12Adjusting Manufacturing Overhead: At the
end of 2016, the Manufacturing Overhead account is closed.
A L + E
= COGS
MOH
Manufacturing Overhead Cost of Goods Sold

Trans. 2 17,000 Trans. 8 67,600 Trans. 11 584,600
Trans. 3 28,000 Trans. 12 15,400
Trans. 4 20,000 Bal. 600,000
Trans. 5 7,000
Trans. 6 6,000
Trans. 7 5,000
Bal. 15,400 Underallocated
Trans. 12 15,400 Manufacturing
Bal. 0 Overhead

Accounting for Manufacturing
Overhead
Exhibit
Exhibit19-9
19-9Accounting
Accountingfor
forManufacturing
Overhead
Before the Period
Calculating the Predetermined Overhead Allocation Rate
Predetermined Overhead Total estimated manufacturing costs

Allocation Rate = Total estimated quantity of the overhead allocation base

Overhead
Exhibit
Exhibit19-9
19-9Accounting
Accountingfor
forManufacturing
Overhead
Before the Period

During the Period

Allocating Overhead
Predetermined Actual Quantity of the
Allocated Manufacturing Overhead Allocation Base Used
=
Overhead Cost Allocation Rate by Each Job

Overhead
Exhibit
Exhibit19-9
19-9Accounting
Accountingfor
forManufacturing
Overhead
Before the Period

During the Period

Allocating Overhead
=
At the End of the Period

Adjusting for Overallocated and Underallocated Overhead
Manufacturing Cost of
Journal Entry
Overhead Goods Sold
Actual costs > allocated costs Underallocated Undercosted DR COGS
CR MOH

Overhead
Exhibit
Exhibit19-9
19-9Accounting
Accountingfor
forManufacturing
Overhead
Before the Period

During the Period

Allocating Overhead
=
At the End of the Period

Adjusting for Overallocated and Underallocated Overhead
Manufacturing Cost of
Journal Entry
Overhead Goods Sold
Actual costs > allocated costs Underallocated Undercosted DR COGS
CR MOH
Actual costs < allocated costs Overallocated Overcosted DR MOH
CR COGS

Summary of Journal Entries
A L + E
=
RM A/P
A L + E
RM = MOH
WIP
A L + E
WIP = Wages Pay MOH


(continued)
A L + E
Accum = MOH
Depr
A L + E
Cash = MOH
A L + E
Prepaid = MOH
Insurance

(continued)
A L + E
= Prop Tax MOH
Pay
A L + E
WIP = MOH
A L + E
FG =
WIP

(continued)
A L + E
A/R = Sales
Revenue
A L + E
FG = COGS
A L + E
= COGS
MOH

Schedule of Cost of Goods
Manufactured

Income Statement

Company for the year:
Estimated manufacturing overhead $500,000
Estimated direct labor hours 10,000 hours
Actual manufacturing overhead $550,000
Actual direct labor hours 10,500 hours

allocation rate using direct labor hours as the
allocation base.

allocation rate using direct labor hours as the
allocation base.
$500,000
10,000 direct labor hours
$50 per direct labor hour

14. Determine the amount of overhead allocated
during the year. Record the journal entry.

14. Determine the amount of overhead allocated
during the year. Record the journal entry.
$50 per direct labor hour 10,500 hours
= $525,000
Work-in-Process Inventory 525,000


15. Determine the amount of underallocated or
overallocated overhead. Record the journal
entry to adjust Manufacturing Overhead.

15. Determine the amount of underallocated or
overallocated overhead. Record the journal
entry to adjust Manufacturing Overhead.
Actual overhead $ 550,000
Allocated overhead 525,000
Underallocated $ 25,000
Cost of Goods Sold 25,000


Calculate job costs for

a service company

Predetermined Overhead Allocation
Rate in a Service Company
Walsh Associates, a law firm, estimates the
following indirect costs for 2016:
Office rent $ 200,000
Office support staff 70,000
Maintaining and updating law library for case research 25,000
Advertisements 3,000
Sponsorship of the symphony 2,000
Total indirect costs $ 300,000

Walsh uses direct labor hours as the allocation
base because direct labor hours are the main
driver of indirect costs. It is estimated that Walsh
attorneys will work 10,000 direct labor hours in
2016. The predetermined overhead allocation rate
is:

Walsh uses direct labor hours as the allocation
base because direct labor hours are the main
driver of indirect costs. It is estimated that Walsh
attorneys will work 10,000 direct labor hours in
2016. The predetermined overhead allocation rate
is:
$300,000 expected indirect costs
10,000 expected direct labor hours
= $30 per direct labor hour

Allocating indirect costs to jobs
Direct labor costs are $50 per hour. Client 367
required 14 direct labor hours. The total costs
assigned to Client 367 are:

Allocating indirect costs to jobs
Direct labor costs are $50 per hour. Client 367
required 14 direct labor hours. The total costs
assigned to Client 367 are:
Direct labor: 14 hours $50 per hour $

700
Indirect costs: 14 hours $30 per hour
420
Total costs $ 1,120

Pricing Decisions
The total hourly rate for the company is $80 ($50
per hour for direct labor plus $30 per hour for
indirect costs). If the firm desires a profit equal
to 75% of the firms cost, then the price would
be:
Markup = Total Cost Markup Percentage

Pricing Decisions
be:
= $80 per hour 75%
= $60 per hour

Pricing Decisions
be:
= $80 per hour 75%
= $60 per hour
Price = Total Cost + Markup

Pricing Decisions
indirect costs). If the firm desires a profit equal to
75% of the firms cost, then the price would be:
= $80 per hour 75%
= $60 per hour
Price = Total Cost + Markup
= $80 per hour + $60 per hour
= $140 per hour

Wesson Company is a consulting firm. The firm
expects to have $45,000 in indirect costs
during the year and bill customers for 6,000
hours. The cost of direct labor is $75 per hour.
16.Calculate the predetermined overhead
allocation rate for Wesson.

Wesson Company is a consulting firm. The firm
expects to have $45,000 in indirect costs
during the year and bill customers for 6,000
hours. The cost of direct labor is $75 per hour.
16.Calculate the predetermined overhead
allocation rate for Wesson.
$45,000
6,000 billable hours
$7.50 per billable hour
17. Wesson completed a consulting job for
George Peterson and billed the customer for
15 hours. What was the total cost of the
consulting job?

17. Wesson completed a consulting job for
George Peterson and billed the customer for
15 hours. What was the total cost of the
consulting job?
Direct labor
15 billable hours $75.00 per billable hour = $1,125.00
Indirect costs
15 billable hours $7.50 per billable hour =
112.50
Total cost $1,237.50
18. If Wesson wants to earn a profit equal to 60%
of the cost of a job, how much should the
company charge Mr. Peterson?

18. If Wesson wants to earn a profit equal to 60%
of the cost of a job, how much should the
company charge Mr. Peterson?
Profit = 60% of cost
=60% $1,237.50
=$742.50
Price = Cost + Profit
=$1,237.50 + $742.50
=$1,980.00
Key Terms
Allocation Base
Cost Driver
Job
Job Cost Record
Job Order Costing System
Labor Time Record

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Job Order

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Record materials and

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Job Product costs

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Work-in-Process Inventory Finished Goods Inventory

Job Product costs

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Work-in-Process Inventory Finished Goods Inventory

Job When the job is completed,

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BALANCE SHEET INCOME STATEMENT

Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold

Job When the job is completed, When

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Raw Materials Inventory

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Raw Materials Inventory

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Raw Materials Inventory Work-in-Process Inventory

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Raw Materials Inventory Work-in-Process Inventory

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Wages Payable Work-in-Process Inventory

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Raw Materials Inventory 10,000

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Work in Process Inventory 6,000

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Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-34

Work in Process Inventory 6,400

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Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-36

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-37

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-38

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Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-40

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-41

Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-42

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Copyright 2014 Pearson Education, Inc. publishing as Prentice Hall 19-44

1. Calculating the predetermined overhead

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