Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 2, Problem 18E
For E2-17, prepare any
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following:
- a. Purchased raw materials, on account, $70,000.
- b. Requisitioned raw materials to production, $70,000.
- c. Distributed direct labor costs, $15,000.
- d.
Factory overhead costs incurred, $45,000. (Use Various Credits for the account in the credit part of the entry.) - e. Completed all of the production started.
- f. Sold the completed production for $195,000, on account.
(Hint: Use a single account for raw materials and work in process.)
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Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold:
1(Click
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First, compute cost of goods manufactured.
Schedule of Cost of Goods Manufactured
Beginning Work-in-Process Inventory
$42,000
Direct Materials Used:
Beginning Direct Materials
$21,000
Purchases of Direct Materials
78,000
Direct Materials Available for Use
99,000
Ending Direct Materials
(33,000)
Direct Materials Used
$66,000
Direct Labor
81,000
Manufacturing Overhead
41,000
Total Manufacturing Costs Incurred during the Year
188,000
Total Manufacturing Costs to Account For
230,000
Ending Work-in-Process…
Use the following information for a manufacturer to compute cost of goods manufactured and cost of goods sold:
Data Table
Balances:
Beginning
Ending
Direct Materials
$20,000
$32,000
Work-in-Process Inventory
39,000
37,000
Finished Goods Inventory
14,000
23,000
Data Table
Other information:
Purchases of direct materials
$79,000
Direct labor
80,000
Manufacturing overhead
41,000
First, compute cost of goods manufactured.
Schedule of Cost of Goods Manufactured
Direct Materials Used:
Direct Materials Used
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Cost of Goods…
Required: Complete the following (in dollars):
a Schedule of Cost of Goods Manufactured
b. Cost of Goods
c. Income Statement in good form
Sales
Raw Materials Used
Direct Labor Costs
Period Costs (Selling and Administrative)
Beginning Raw Material Inventory
Ending Raw Material Inventory
Raw Materials Purchased
Beginning Work-in-Process Inventory
Ending Work-in-Process Inventory
Beginning Finished Goods Inventory
Ending Finished Goods Inventory
Applied Manufacturing Overhead
NOTE: All raw materials used were direct materials.
$12,000
2,500
1,000
2.500
300
1,000
3,200
0
300
700
400
5,700
Chapter 2 Solutions
Principles of Cost Accounting
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Ch. 2 - Prob. 11QCh. 2 - Proper authorization is required before orders for...Ch. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Normally, a manufacturer maintains an accounting...Ch. 2 - Prob. 19QCh. 2 - Why do companies adopt the LIFO method of...Ch. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - Prob. 23QCh. 2 - Prob. 24QCh. 2 - Prob. 25QCh. 2 - Prob. 26QCh. 2 - Prob. 27QCh. 2 - Prob. 28QCh. 2 - A manufacturing process may produce a considerable...Ch. 2 - After a product is inspected, some units may be...Ch. 2 - Order Point Pershing, Inc. expects daily usage of...Ch. 2 - Economic order quantity; order cost; carrying cost...Ch. 2 - Economic order quantity; order cost; carrying cost...Ch. 2 - Journalizing materials requisitions Penrose...Ch. 2 - Recording materials transactions Prepare a journal...Ch. 2 - PurrChems raw materials records contained the...Ch. 2 - Using first-in, first-out perpetual inventory...Ch. 2 - LIFO costing Using last-in, first-out perpetual...Ch. 2 - Using the weighted average method of perpetual...Ch. 2 - Prob. 10ECh. 2 - Renfro, Inc. was franchised on January 1, 2016. At...Ch. 2 - Recording materials transactions Craig Products...Ch. 2 - Recording materials transactions Broadwell...Ch. 2 - JIT and cost control Matsui Industries produces...Ch. 2 - Kenkel, Ltd. uses backflush costing to account for...Ch. 2 - For E2-15, prepare any journal entries that would...Ch. 2 - Davis Co. uses backflush costing to account for...Ch. 2 - For E2-17, prepare any journal entries that would...Ch. 2 - A machine shop manufactures a stainless steel part...Ch. 2 - Spoiled work Roger Company manufactures tennis...Ch. 2 - Defective work Herbert Electronics manufactures an...Ch. 2 - Perry Co. predicts it will use 25,000 units of...Ch. 2 - Prob. 2PCh. 2 - Economic order quantity; tabular computation Lopez...Ch. 2 - In P2-3, assume that the company desires a safety...Ch. 2 - Inventory costing methods The purchases and issues...Ch. 2 - Inventory costing methods The following...Ch. 2 - Terrills Transmissions uses a job order cost...Ch. 2 - Prob. 8PCh. 2 - Tuscany Products, Inc. uses a job order cost...Ch. 2 - Prob. 10PCh. 2 - JIT and cost control Langray, Ltd. produces 50,000...Ch. 2 - Backflush costing Russell Corp. uses backflush...Ch. 2 - Webster Company uses backflush costing to account...Ch. 2 - An examination of Buckhorn Fabricators records...Ch. 2 - One of the tennis rackets that Ace Sporting Goods...Ch. 2 - Lloyd Industries manufactures electrical equipment...Ch. 2 - Review Problem for Chapters 1 and 2 UltraLift...Ch. 2 - Financial and Nonfinancial Aspects of Changing to...Ch. 2 - Prob. 2MC
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