cost accounting - chapter_5
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Solution ManualTRANSCRIPT
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CHAPTER 5 - JUST IN TIME AND BACKFLUSH ACCOUNTING
TRUE/FALSE
1. True 6. True 2. True 7. True 3. False 8. True 4. True 9. True 5. True 10. False
Problem 1 - AJE Corporation
1) Raw and In Process 16,000
Accounts Payable 16,000
2) Cost of goods sold 32,000
Accrued payroll 15,000
FO Applied 17,000
3) Finished goods 13,500
Raw and In Process 13,500
Raw and In Process 1,000
Cost of goods sold 1,000
4) Cost of goods sold 12,700
Finished goods 12700
Finished goods 1,700
Cost of goods sold 1,700
Problem 2 Magnolia Corporation
CORRECTION: Direct labor cost P 350,000; Factor overhead P380,000
1) Raw and In Process 444,000
Accounts payable 444,000
2) Finished goods 443,000
Raw and In process
443,000
Purchases 444,000
Mat. In RIP beg (23,400-2,400) 21,000
Mat. In RIP end (25,600-3,600) ( 22,000)
Mat. Content of FG 443,000
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Cost of goods sold 730,000
Accrued payroll 350,000
FO Applied 380,000
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3) Cost of goods sold 447,000
Finished goods 447,000
Mat. Content of FG 443,000
Mat. In FG beg. (24,000-8,000) 16,000
Mat. In FG end (19,000-7,000) ( 12,000)
Mat. Content of units sold 447,000
4) Raw and In Process 1,200
Cost of goods sold 1,200
Conversion cost in RIP end 3,600
Conversion cost in RIP beg ( 2,400)
Adjustment 1,200
5) Cost of goods sold 1,000
Finished goods 1,000
Conversion cost in FG end 7,000
Conversion cost in FG beg (8,000)
Adjustment (1,000)
Problem 3 Pocahontas Manufacturing Company 1. Materials purchased 346,000
Materials in RIP beg (11,000 1,200) 9,800 Materials in RIP end (12,400 1,700) ( 10,700) Materials backflushed from RIP to FG 345,100
2. Materials backflushed from RIP to FG 345,100
Materials in FG beg ( 12,000 4,000) 8,000 Materials in FG end ( 9,800 - 3,100) ( 6,700)
Materials backflushed from FG to CofGS 346,400
3) a) Raw and In process 346,000
Accounts payable 346,000
b) Cost of goods sold 250,000
Accrued payroll 100,000
FO Applied 150,000
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c) Finished goods 345,100
Raw and In Process 345,100
d) Cost of goods sold 346,400
Finished goods 346,400
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e) Raw and In Process 500
Cost of goods sold 400
Finished goods 900
RIP FG
End 1,700 3,100
Beginning (1,200) (4,000)
Increase (decrease( 500 ( 900)
Problem 4 Barbie Mfg. Company Additional information Direct labor 80,000; factory overhead 60,000 1) Raw and In Process 100,000
Accounts payable 100,000
2) Finished goods 99,850
Raw and In Process 99,850
Materials purchased 100,000
Materials in RIP beg. (5,000-500) 4,500
Materials in RIP end (5,250-650) ( 4,650)
Materials backflushed from RIP 99,850
3) Cost of goods sold 102,850
Finished goods 102,850
Materials backflushed from RIP 99,850
Materials in FG beg. (11,250-3.250) 8,000
Materials in FG end ( 7,500-2,500) ( 5,000)
Materials backflushed from CofGS 102,850
4) Cost of goods sold 140,000
Accrued payroll 80,000
FO Applied 60,000
5) Raw and in process 150
Cost of goods sold 600
Finished goods 750
RIP FG
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End 650 2,500
Beginning (500) (3,250)
Increase (decrease) 150 750
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Problem 5 Chiz Manufacturing Company
1) Materials purchased 246.000
Materials in RIP beg. ( 14,500-7,200) 7,300
Materials in RIP end ( 22,400-15,700) ( 6,700)
Materials backflushed from RIP to FG 246,600
2) Materials backflushed from RIP to FG 246,600
Materials in FG beg. (16,000-8,800) 7,200
Materials in FG end (19,800-13,100) ( 6,700)
Materials backflushed from FG to CofGS 247,100
3) Materials purchased 246,000
RIP beg. 14,500
FG beg. 16,000
Direct labor 98,000
Factory overhead 125,000
RIP end ( 22,400)
FG end ( 19,800)
Cost of goods sold 457,300
4) a) Raw and in process 246,000
Accounts payable 246,000
b) Finished goods 246,600
Raw and in process 246,600
c) Cost of goods sold 247,100
Finished goods 247,100
d) Cost of goods sold 223,000
Accrued payroll 98,000
FO Applied 125,000
e) Raw and in process 8,500
Finished goods 4,300
Cost of goods 12,800
RIP FG
END 15,700 13,100
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BEGINNING ( 7,200) ( 8,800)
Increase (Decrease) 8,500 4,300