Name:Date:
Instructor:Course:
Managerial Accounting, 3rdEdition, by Weygandt, Kieso, and Kimmel
Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
Problem P2-5A, Freedo Company’s fiscal year ends on June 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year.
Raw Materials
07/01Beginning balance19,00007/31Requisitions(a)88,900
07/31Purchases90,400
07/31Ending balance(b)Amount
Work in Process Inventory
07/01Beginning balance(c)Amount07/31Jobs completed(f)Amount
07/31Direct materials80,000
07/31Direct labor(d)Amount
07/31Overhead(e)Amount
07/31Ending balance(g)Formula
Finished Goods Inventory
07/01Beginning balance(h)Amount07/31Cost of goods sold(j)Amount
07/31Completed jobs(i)Amount
07/31Ending balance(k)Formula
Factory Labor
07/31Factory wages(l)Amount07/31Wages assigned(m)Amount
Manufacturing Overhead
07/31Indirect materials8,90007/31Overhead applied117,000
07/31Indirect labor16,000
07/31Other overhead(n)Amount
Other information:
1. On July 1, two jobs were in process:Job No. 4085with costs of$19,000
Job No. 4086with costs of$8,200
2. During July, Job Nos. 4087, 4088, and 4089 were started. On July 31, only Job No. 4089 was unfinished. This job had charges for direct
materials$2,000and direct labor$1,000plus manufacturing overhead. Manufacturing overhead was applied at the
rate of130%of direct labor.
3. On July 1, Job No. 4084, costing$135,000was in the finished goods warehouse. On July 31, Job No. 4088, costing$143,000
was in finished goods.
4. Overhead was$3,000underapplied in July.
Instructions:
Enter the correct value to the right of each letter in the T-Accounts above. Show your computations in the area provided below.
(a)Enter text values here
(b)Enter text values here
(c)Enter text values here
(d)Enter text values here
(e)Enter text values here
(f)Enter text values here
(g)Enter text values here
(h)Enter text values here
(i)Enter text values here
(j)Enter text values here
(k)Enter text values here
(l)Enter text values here
(m)Enter text values here
(n)Enter text values here