Chapter19 Analyze manufacturing accounts and determine missing amounts
Phillips Corporation's fiscal year ends on November 30. The following accounts are found in its job
order cost accounting system for the first month of the new fiscal year.
Raw Materials Inventory
Dec. 1 Beginning balance (a) Dec. 31 Requisitions
31 Purchases 17,225
Dec.31 Ending balance 7,975
Work in Process Inventory
Dec. 1 Beginning balance (b) Dec. 31 Jobs completed
31 Direct materials (c)
31 Direct labor 8,400
31 Overhead (d)
Dec. 31 Ending balance (e)
Finished Goods Inventory
Dec. 1 Beginning balance (g) Dec. 31 Cost of goods sold
Dec. 31 Jobs completed (h)
Dec. 31 Ending balance (j)
Factory Labor
Dec. 31 Factory wages 12,025 Dec. 31 Wages assigned
Manufacturing Overhead
Dec. 31 Indirect materials 2,900 Dec. 31 Overhead applied
31 Indirect labor (l)
31 Other overhead 1,245
Other data:
1. On December 1, two jobs were in process: Job No. 154 and Job No.155. These jobs had combined
materials costs of $9,750 and direct labor costs of $15,000. Overhead was applied at a rate that was
of direct labor cost.
2. During December, Job Nos. 156, 157 and 158 were started. On December 31, Job No. 158 was unf
This job had charges for direct materials $3,800 and direct labor $4,800 plus manufacturing overhea
jobs, except for Job No. 158, were completed in December.
3. On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,000. On
December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,000.
4. Manufacturing overhead was $1,470 underapplied in December.
Instructions
List the items (a) through (m) and indicate the amount pertaining to each letter.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a
(a) Beginning balance, raw materials
Total requisitions Value
Ending balance, raw materials Value
Less: purchases Value
Beginning balance, raw materials ?
(b) Beginning work in process (Job 154 & Job 155)
Direct materials Value
Direct labor Value
Overhead applied ?
?
(c ) Direct materials
Requisitions of raw materials Value
Less: indirect materials Value
Direct materials ?
(d) Overhead applied
Direct labor Value
Overhead applied ?
(75% of DL)
(e) Ending work in process (Job No. 158)
Direct materials Value
Direct labor Value
Overhead applied ?
?
(f) Completed Jobs (Jobs 154 -157)
Beginning balance, work in process Value
Direct materials Value
Direct labor Value
Overhead applied Value
Less: ending work in process Value
Jobs completed ?
(g) Beginning balance, finished goods (Job 153) Value
(h) Jobs completed Value
(i) Cost of goods sold
Beginning finished goods Value
Jobs completed Value
Less: ending finished goods Value
Cost of goods sold ?
(j) Ending finished goods (Job 157) Value
(k) Wages assigned to work in process Value
(l) Indirect labor
Factory wages Value
Less: direct labor Value
Indirect labor Value
(m) Overhead applied
Direct labor Value
Overhead applied ?
When you have completed P15-5A, consider the following additional question.
1. Assume that requisitions changed to $17,600. Show the impact of this
change on the items listed.
e found in its job
$16,850
(f)
(i)
(k)
(m)
hese jobs had combined direct
pplied at a rate that was 75%
31, Job No. 158 was unfinished.
manufacturing overhead. All
total cost of $5,000. On
d a cost of $4,000.
a formula in cells with a "?" .