Acct344 Cost Accounting: Week 1 Homework (Able Corporation and Bearing Manufacturing Company)

Acct344 Cost Accounting
Week 1 Homework

Problem 1:
Able Corporation incurred the following costs.
Beginning direct materials inventory 16,000
Beginning work-in-process inventory 7,000
Beginning finished goods inventory 19,000
Ending direct materials inventory 16,000
Ending work in process 14,000
Ending finished goods 26,000
Factory supervisor's salary 28,000
Depreciation on plant 12,000
Sales 800,000
Selling and administrative expenses 125,000
Plant maintenance 6,000
Plant utilities 11,000
Direct material purchases 215,000
Direct labor 240,000

Calculate the following.
a. Direct materials used
b. Cost of goods manufactured
c. Cost of goods sold
d. Operating income

Problem 2:
Below is information from Job Card 506 for the Bearing Manufacturing Company. Date started: June 15, 2015
Date Completed: July 24, 2015
Date Direct Materials Direct Labor Applied Factory Overhead Job Total
6/15/2015 5,000
6/25/2015 1,200 600
6/27/2015 2,300
7/6/2015 1,540 770
7/15/2015 2,600
7/24/2015 760 380
Job 506 was sold on credit on July 24, 2015, for 180% of its cost. Factory OH was applied on the basis of DL.

a. Prepare the journal entries to record the costs incurred for Job 506 in 2015 for direct materials, direct labor, and factory overhead.
b. Prepare the journal entry to record the completion of Job 506.
c. What is the predetermined factory overhead rate for Bearing Manufacturing?
d. Prepare the journal entries to record the sale of Job 506.
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