Instructions 1. Journalize the entries to record the transactions indentified below. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balance in the Work in Process account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
**Instructions:**

1. **Journalize the entries** to record the transactions identified below.
2. **Determine the account balances** for Work in Process and Finished Goods.
3. **Prepare a schedule** of unfinished jobs to support the balance in the Work in Process account.
4. **Prepare a schedule** of completed jobs on hand to support the balance in the Finished Goods account.

**Transactions:**

a. **Materials purchased on account:** 60,000

b. **Materials and Labor Costs:**
   - **Job #100**
     - Materials: 5000
     - Factory Labor: 2500
     - Factory Overhead: 
   - **Job #101**
     - Materials: 4000
     - Factory Labor: 2000
     - Factory Overhead: 
   - **Job #102**
     - Materials: 3500
     - Factory Labor: 1750
     - Factory Overhead: 
   - **Job #103**
     - Materials: 2500
     - Factory Labor: 1250
     - Factory Overhead: 
   - **Job #104**
     - Materials: 1000
     - Factory Labor: 500
     - Factory Overhead: 
   - **Job #105**
     - Materials: 1500
     - Factory Labor: 750
     - Factory Overhead: 
   - **For general factory use:** 
     - Materials: 1800
     - Factory Labor: 
     - Factory Overhead: 

c. **Factory overhead costs incurred:** 10,000

d. **Depreciation of machinery:** 8000
   - Factory overhead applied as a percent of direct labor cost: 50%

e. **Jobs completed:** 100, 101, 102, and 104

f. **Jobs 100, 101, 102 were shipped** to customers. 
   - Customers were billed:
     - Job #100: 12000
     - Job #101: 13000
     - Job #102: 14000

This document provides a structured approach for accounting entries related to manufacturing processes, focusing on materials, labor, overhead, and job completion status for effective financial management.
Transcribed Image Text:**Instructions:** 1. **Journalize the entries** to record the transactions identified below. 2. **Determine the account balances** for Work in Process and Finished Goods. 3. **Prepare a schedule** of unfinished jobs to support the balance in the Work in Process account. 4. **Prepare a schedule** of completed jobs on hand to support the balance in the Finished Goods account. **Transactions:** a. **Materials purchased on account:** 60,000 b. **Materials and Labor Costs:** - **Job #100** - Materials: 5000 - Factory Labor: 2500 - Factory Overhead: - **Job #101** - Materials: 4000 - Factory Labor: 2000 - Factory Overhead: - **Job #102** - Materials: 3500 - Factory Labor: 1750 - Factory Overhead: - **Job #103** - Materials: 2500 - Factory Labor: 1250 - Factory Overhead: - **Job #104** - Materials: 1000 - Factory Labor: 500 - Factory Overhead: - **Job #105** - Materials: 1500 - Factory Labor: 750 - Factory Overhead: - **For general factory use:** - Materials: 1800 - Factory Labor: - Factory Overhead: c. **Factory overhead costs incurred:** 10,000 d. **Depreciation of machinery:** 8000 - Factory overhead applied as a percent of direct labor cost: 50% e. **Jobs completed:** 100, 101, 102, and 104 f. **Jobs 100, 101, 102 were shipped** to customers. - Customers were billed: - Job #100: 12000 - Job #101: 13000 - Job #102: 14000 This document provides a structured approach for accounting entries related to manufacturing processes, focusing on materials, labor, overhead, and job completion status for effective financial management.
### True or False Statements on Cost Accounting Systems

1. **Cost accounting systems measure, record, and report product costs.**
   - T F

2. **A job order cost system tracks costs from materials inventory to work in process inventory to finished goods inventory to cost of goods sold.**
   - T F

3. **A job order cost system provides product costs for each manufacturing department or process.**
   - T F

4. **A receiving report indicates the quantity of materials received and the condition of the materials received.**
   - T F

5. **The predetermined factory overhead rate equals estimated total factory overhead costs divided by the minimum activity base.**
   - T F

6. **Over-applied factory overhead occurs when less than the total factory overhead is applied.**
   - T F

7. **Work in Process includes direct materials cost, direct labor cost, and applied factory overhead costs.**
   - T F

8. **Period costs are added to the finished goods account.**
   - T F

9. **A job order cost system can be used by managers for cost evaluation and control.**
   - T F

10. **A materials ledger is a separate ledger for each type of work in process.**
    - T F

### Explanation

This set of true or false statements is designed to test your understanding of cost accounting systems, particularly job order costing. The key focus is on cost tracking and management in manufacturing, with emphasis on overhead rates, cost processes, and reporting tools used by managers. Each statement requires careful consideration to determine its truthfulness based on accounting principles and practices.
Transcribed Image Text:### True or False Statements on Cost Accounting Systems 1. **Cost accounting systems measure, record, and report product costs.** - T F 2. **A job order cost system tracks costs from materials inventory to work in process inventory to finished goods inventory to cost of goods sold.** - T F 3. **A job order cost system provides product costs for each manufacturing department or process.** - T F 4. **A receiving report indicates the quantity of materials received and the condition of the materials received.** - T F 5. **The predetermined factory overhead rate equals estimated total factory overhead costs divided by the minimum activity base.** - T F 6. **Over-applied factory overhead occurs when less than the total factory overhead is applied.** - T F 7. **Work in Process includes direct materials cost, direct labor cost, and applied factory overhead costs.** - T F 8. **Period costs are added to the finished goods account.** - T F 9. **A job order cost system can be used by managers for cost evaluation and control.** - T F 10. **A materials ledger is a separate ledger for each type of work in process.** - T F ### Explanation This set of true or false statements is designed to test your understanding of cost accounting systems, particularly job order costing. The key focus is on cost tracking and management in manufacturing, with emphasis on overhead rates, cost processes, and reporting tools used by managers. Each statement requires careful consideration to determine its truthfulness based on accounting principles and practices.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

Blurred answer
Knowledge Booster
Double entry bookkeeping system
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education