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Category : Business and Marketing
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Date Submitted: 01/23/2012 11:29 AM
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Accounting Income Statement And Balance Sheet

Individual Assignment Week 2

Anna Stikl

ACC/349

January 23, 2012

Laurie Swobada

Individual Assignment Week 2

E2-6

a.)

1. What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?

Raw materials are first requested with a materials requisition slip that indicates what account is being charged for these materials. It is determined if it is direct materials, which will be charged to Work in Process Inventory, or indirect materials, which will be charged to Manufacturing overhead. Labor costs first come from time tickets which indicate the employee, the hours worked, the account being charged, and the total amount of labor cost. The manufacturing overhead cost is an amount that is established by the company in the beginning of the year. They take their estimated annual overhead costs divide by expected annual operating activity to get their predetermined overhead rate. This is applied to all jobs.

2. What is the predetermined manufacturing overhead rate?

$1,632

3. What are the total cost and the unit cost of the completed job?

Total cost = $7,820

Unit cost = $3.91

b.) Prepare the entry to record the completion of the job.

July 31 Finished Goods Inventory 7,820

Work in Process Inventory 7,820

(To record completion of Job No. 469)

E2-9

a.)

Yellow Knife Manufacturing Company

Cost of Goods Manufactured Schedule

For the Month Ended May 31, 2005

Work in process, May 1st 14,700

Direct materials used 62,400

Direct labor 32,000

Manufacturing overhead applied 48,000

Total manufacturing costs 142,400

Total cost of work in process 157,100

Less: work in process, date 17,900

Cost of goods manufactured 139,200

b.)

Revenues...

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