Chapter 1:

Brief Exercise 1-9

Ruiz Company's Balance Sheet
31-Dec-14
Current assets
Cash
$ 62,000.00
Accounts Receivable
$ 200,000.00
Inventories
Finished goods
$ 91,000.00
Work in process
$ 87,000.00
Raw materials
$ 73,000.00 $ 251,000.00
Prepaid expenses
$ 38,000.00
Total current assets
$ 551,000.00

Problem 1-5A
a.
Phillips Manufacturing
Cost of Goods Manufactured Schedule
For the Month Ended October 31, 2014
Work in process, October 1..
Direct Materials
Raw materials inventory, Oct 1
$
18,000.00
Raw materials purchases
$
264,000.00
Total raw materials available for use.$
282,000.00
Less: Raw materials inventory, Oct 31 $
29,000.00
Direct materials used.
$
Direct Labor
$
Manufactoring overhead
Depreciation on factory equipment
$
31,000.00
Rent on factory facilities
$
60,000.00
Indirect labor $
28,000.00
Utilities expense
$
9,000.00
Insurance expense $
4,800.00
Total manufacturing overhead.
$
Total manufacturing costs
Total cost of work in process.
Less: Work in process, Oct 31.
Cost of goods manufactured .

253,000.00
190,000.00

132,800.00

b.
Phillips Manufacturing Company
Income Statement
For the Month Ended October 31, 2014
Net Sales.
Finished Goods inventory, Oct 1
$
Cost of goods manufactured Oct
$
Finished Goods Inventory, Oct 31
$

30,000.00
577,800.00
45,000.00

Gross profit
Other expenses:
Advertising expense
Selling and administrative salaries.
Depreciation of sales equipment
Utility expense
Insurance expense
Totaling:
Net Income

$
$
$
$
$

90,000.00
75,000.00
45,000.00
3,000.00
3,200.00

16,000.00

$
$
$
$

575,800.00
591,800.00
14,000.00
577,800.00

780,000.00

$
$

562,800.00
217,200.00

216,200.00
$1,000

Overhead cost
direct labor hours

$ 440,000.00
$
20,000.00

Raw Materials Inventory

Accounts Payable
Factory Labor
Factory Wages Payable
Employer Payroll Taxes Payable
Manufacturing Overhead
Accounts Payable
Accumulated Depreciation
Raw Materials Inventory
Factory Labor

Work in Process Inventory

Raw Materials Inventory
(5,000+17,000+13,000)
Work in Process Inventory
Factory Labor
(3,000+12,000+9,000)
Work in Process Inventory
Manufacturing Overhead
(37,000*146.667% off

Overhead rate
22.00

45,000.00
$

45,000.00

$
$

26,000.00
7,500.00

$
$
$
$

11,000.00
12,000.00
10,000.00
9,500.00

35,000.00

24,000.00

$
direct labor costs)

54,267.00

33,500.00

42,500.00

35,000.00

24,000.00

54,267.00

Job Cost Sheet

Job No. 25
Date
Direct Materials
Direct Labor
Manufacturing Overhead
Beg.
$
10,000.00 $
6,000.00 $
9,000.00
Jan.
$
5,000.00 $
3,000.00 $
4,400.00
Cost of completed job
Direct materials
Direct labor
Manufacturing overhead..
Total Cost
Job No. 26
Date
Jan.

$
$
$
$

15,000.00
9,000.00
13,400.00
37,400.00

Direct Materials
Direct Labor
Manufacturing Overhead
$
17,000.00 $
12,000.00 $
17,600.00

Cost of completed job

Direct materials
Direct labor
Manufacturing overhead..
Total Cost

$
$
$
$

17,000.00
12,000.00
17,600.00
46,600.00

Job No.27
Date
Jan.

Direct Materials
Direct Labor
Manufacturing Overhead
$
13,000.00 $
9,000.00 $
13,200.00

Cost of completed job

Direct materials
Direct labor
Manufacturing overhead..
Total Cost

$
$
$
$

13,000.00
9,000.00
13,200.00
35,200.00

Cost of Goods sold.

$
79,400.00
Finished goods inventory ($42,000+ $37,400)

79,400.00

Accounts Receivable.
Sales ($63,000+$74,000)

137,000.00

$
$
$
$

11,000.00
12,000.00
10,000.00
9,500.00

35,200.00

Finished Goods Inventory

42000
84000
46600

$ 137,000.00

79400

Manufacturing Overhead
$
Accounts Payable..
Accumulated Depreciation.
Raw Materials Inventory
Factory Labor.

42,500.00

Work in Process Inventory.

$
35,200.00
Manufacturing Overhead
($24,000 X 146.67% of direct labor costs)
Manufacturing Overhead
Actual
Applied
$ 42,500.00 $
35,200.00
$
7,300.00 underapplied

A.
per hour
C.

D.

B. & E.

g Overhead
(3,000*146.67%)

g Overhead
(12,000*146.67%)

g Overhead
(9,000*146.67%)

F.

H.