ACC 202 Ch 2 Problem Set PDF

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Ch 2 Problem Set & Notes...

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EX 02-11 The overhead costs will be assigned to procedures, based on the number of surgical room hours. Poehling Medical Center expects to use the operating room an average of eight hours per day, seven days per week. In addition, the operating room will be shut down two weeks per year for general repairs. 8 * 7 * 50 = 2,800 1232000/2800 = 440

6*440=2640

194 * 440 = 83,600

85,360 – 83,500 = 100 overapplied

EX.02-13 CHART OF ACCOUNTS Old School Publishing Inc. General Ledger ASSETS

REVENUE

110 Cash

410 Sales

121 Accounts Receivable

610 Interest Revenue

ASSETS 125 Notes Receivable 126 Interest Receivable

REVENUE 410 Sales EXPENSES

131 Materials 132 Work in Process

510 Cost of Goods Sold

133 Factory Overhead

520 Wages Expense

134 Finished Goods

531 Selling Expenses

141 Supplies

532 Insurance Expense

142 Prepaid Insurance

533 Utilities Expense

143 Prepaid Expenses

534 Office Supplies Expense

181 Land

540 Administrative Expenses

191 Factory

560 Depreciation Expense-Factory

192 Accumulated Depreciation-Factory 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 241 Lease Payable 251 Wages Payable 252 Consultant Fees Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary

Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,000 of indirect materials and $11,200 of

indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:

Job 301

Job 302

Direct materials $10,200 Direct materials $21,000 Direct labor

8,000

Direct labor

15,400

Factory overhead 6,080 Factory overhead 11,704 Total

$24,280

Job 303

Total

$48,104

Job 304

Direct materials $23,000 Direct materials $14,200 Direct labor Factory overhead

18,000

Direct labor

12,200

—

Factory overhead

—

Required:

Journalize the Jan. 31 summary entries to record each of the following operations for January (one entry for each operation). Refer to the Chart of Accounts for exact wording of account titles. a. Direct and indirect materials used. b. Direct and indirect labor used. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302....