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7-18

7-18. Ass i g n i ng C o st s t o Jo b s: P a w n e e W o rksh op s . Accumula t ed Depreciation—Propert y , Pla n t, and Equi p me n t ............................ . ....................... . . 10,000. Materials. Work-In-Process. Finished Goods. Beg. Inventory. Beg. Inventory .

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7-18

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  1. 7-18 Assigning Coststo Jobs: PawneeWorkshops. Accumulated Depreciation—Property,Plant,and Equipment................................................................ 10,000

  2. Materials Work-In-Process Finished Goods Beg. Inventory Beg. Inventory Beg. Inventory Cost of Goods Completed and Transferred from WIP + Purchases + Direct Materials Transferred from Raw Materials + Materials Available for Production = + Direct Labor = Goods Available for Sale Manufacturing Overhead + - Materials T’ferred to WIP or OH Control Raw Materials Transferred to Cost of Goods Sold - = Total Manufacturing Costs = Ending Inventory - - Cost of Goods Completed and Transferred to Finished Goods Cost of Goods Completed and Transferred to Finished Goods = Ending Inventory To the income statement = Ending Inventory The Inventory Accounts and Cost Flows Overhead Account(s)

  3. Pr. 7-18 continued

  4. 7-18 concluded Stated otherwise: CGS= BIFG+Goods Completed –EIFG 52,680 = 33,200 + Goods Completed -28640

  5. 7-21. (25min.)AssigningCosts to Jobs:Cardinals,Inc. a.$96,000,thecreditsideof theMaterialsInventoryaccount. b.$72,000. Directlabor..............................................$90,000 Laborrate................................................$30per hour Directlabor-hours....................................$90,000/$30=3,000hours Manufacturingoverheadapplied.............3,000x$24=$72,000 c.$180,000,the debitadditiontotheFinished Goods Inventoryaccount. d.$138,000. BB +TI – TO = EB EB=$60,000+($96,000+$90,000+$72,000)–$180,000EB=$138,000 $6,000(underapplied)=$78,000–$72,000.

  6. 7-21 concluded aThecreditfromFinished GoodsInventoryfor$120,000plus$6,000underappliedoverhead.

  7. 7-23.AssigningCoststoJobs:PineRidgeCorporation. $190,000,thecreditsideofthe MaterialsInventoryaccount. (There are no indirect materials!) $5,000underapplied(=$155,000Control–$150,000Applied). DL cost is the basis, so: 80%(=$150,000Applied÷$187,500DirectLaborCost). $345,000,thedebitadditiontotheFinishedGoods Inventoryaccount. e. BB+TI–TO=EB EB=$100,000+($190,000+$187,500+$150,000)–$345,000EB=$282,500

  8. 7-23 concluded

  9. 7-24

  10. 7-26

  11. 7-35

  12. Ex. 7-38

  13. 7-46. (55min.) Tracing CostsIn AJobCompany: DunganCabinetry

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