MANAGERiAL ACCOUNTING CHAPTER Answer.doc

MBA 513 MANAGERIAL ACCOUNTING CHAPTER 17 EX 17-4Work in Process 98,600 25,400+19,600+1,200+52,400=98,600Factory Overhead 1450 Materials 100,050EX 17-6Work in Process 35475Wages Payable 35475 2100+1750+3200+11200+3650+2240+1460+9875=35475EX 17-11AEstimated annual operating room overhead: $492,000Estimated operating room activity base, number of operating room hours:Hours per day 8Days per week *6Weeks per year (net of maintenance weeks) *50Estimated annual operating room hours 2,400Predetermined surgical overhead rate: hours $492,000/2400 = $205 per hourB Gretchen Keltons procedure:Number of surgical room hours 6Predetermined surgical room overhead rate $205 Procedure overhead $1230C Actual hours used in January 192Predetermined surgical room overhead rate $205 Surgical room overhead applied, January $39,360Actual surgical room overhead incurred, January $38,500Over applied surgical room overhead (credit) $860EX 17-14ASalsa INC.Income StatementFor the Month Ended May 31, 2010-Revenues. $870,000Cost of goods sold. 485,000Gross profit. $ 385,000Selling expenses. $210,000Administrative expenses. 75,400 285,400Income from operations. $ 99,600B Materials inventory:Purchased materials. $244000Less: Materials used in production. 210000Materials inventory, May 31. $34000Work in process inventory:Materials used in production. $210,000Direct labor. 180,000Factory overhead (75% $180000). 135,000Additions to work in process. . 525,000Less: Transferred to finished goods. 510,000Work in process inventory, May 31. $ 15,000Finished goods inventory:Transferred to finished goods. $510,000Less: Cost of goods sold. 485,000Finished goods inventory, may 31. $ 25,000PR17-2Aa. Materials. 23,400 Accounts Payable. 23,400b. Work in Process. 35115 Factory Overhead. 4110 860+3250=4110 Materials. 20255 2350+2875+1900+6450+4100+2580=20255 Wages Payable. 18970 2200+2970+1490+5460+4150+2650=18970c. Factory Overhead. 4,500 Accounts Payable. 4,500d. Factory Overhead. 1,560 Accumulated DepreciationMachinery and Equipment. 1,560e. Work in Process. 10,000 Factory Overhead (200 hours $50) 10,000f. Finished Goods. $24,265 Work in Process. $24,265 Computation of cost of jobs finished: Job Direct Materials Direct Labor Factory Overhead Total No. 201 $ 2350 $2200 50*18=900 5450 No. 202 2875 2970 50*30=1500 7345 No. 203 1900 1490 50*24=1200 4590 No. 205 2580 2650 50*33=1650 6880 Total $24,265 g. Accounts Receivable. 50530 22290+ 28240= 50530Sales. 50530Cost of Goods Sold. 28240Finished Goods. 28240Computation of cost of jobs sold: JobNo. 201. $6540No. 202. 8820No. 203. 12,880Total. 28240Finished Goods(f) 24,265_BAL -3975(g) 28240_2 Work in Process (b) 35115 (e) 10,000BAL. 20850(f) 24,265_ 3 Job Direct Materials Direct Labor Factory Overhead TotalNo. 204 $6450 $5460 $50*75=3750 15660No. 206 2580 2650 $50*20=1000 6230Balance of Work inProcess, April 31 $