P.

3-58
Manufacturing Overhead (MOH) Rate
Budgeted MOH
MOH Rate =
Direct Labor Hours

US$ MOH Rate per Labor hours

= 462,000
22.000
21,000
 No Description Debit Credit
a Raw Material Inventory 6,000
Account Payable 6,000

b Raw Material Inventory 5,200

Account Payable 5,200

c Work in Process Inventory - Job T74 1,430 (260 x 5.5)

Work in Process Inventory - Job C41 9,900 (1,100 x 9)
Raw Material Inventory 11,330
Manufacturing Overhead - Actual 120 (10 x 12)
Manufacturing Supplies Inventory 120

d Work in Process Inventory - Job T74 17,000 (850 x 20)

Work in Process Inventory - Job C41 19,000 (950 x 20)
Manufacturing Overhead - Actual 14,100 (4,500 + 9,600)
Wages Payable 50,100

e Manufacturing Overhead - Actual 13,000

Accumulated Depreciation: Building and Equipment 13,000

f Manufacturing Overhead - Actual 1,340

Cash 1,340

g Manufacturing Overhead - Actual 2,400

Utilities Payable 2,400

h Manufacturing Overhead - Actual 2,370

Cash 2,370

i Manufacturing Overhead - Actual 2,900

Prepaid Insurance 2,900

j Salaries Expense 7,500

Cash 7,500

k Depreciation Expense: Office Equipment and Space 4,500

Accumulated Depreciation: Office Equipment and Space 4,500

l Miscellaneous Expense 1,150

Cash 1,150

m Work in Process Inventory - Job T74 18,700 Lihat Job Cost Sheet T74
Manufacturing Overhead - Applied 18,700
Work in Process Inventory 37,130 Lihat Job Cost Sheet T74
Work in Process Inventory - Job T74 37,130
Finished Goods Inventory 37,130
Work in Process Inventory 37,130

n Account Receivable 27,360 (76/2 x 720)

Sales 27,360
Cost of Goods Sold 18,565 (37,130/76 x 76/2)
Finished Goods Inventory 18,565
ADDITIONAL JOURNAL
o Work in Process Inventory - Job C41 20,900 Lihat Job Cost Sheet C41
Manufacturing Overhead - Applied 20,900
p Manufacturing Overhead - Applied 39,600
Manufacturing Overhead - Actual 39,600
q Manufacturing Overhead - Actual 3,370
Cost Of Goods Sold 3,370
r Work in Process Inventory 49,800 Disclose Only
Work in Process Inventory - Job C41 49,800
 Cash
B 11,000
f 1,340
h 2,370
j 7,500
l 1,150
E (1,360)
Account Receivable
B 20,000
n 27,360
E 47,360
Manufacturing Overhead - Actual Manufacturing Overhead - Applied
B 0 B 0
c 120 p 39,600 p 39,600 m 18,700
d 14,100 o 20,900
e 13,000 E 0
f 1,340
g 2,400
h 2,370
i 2,900
36,230 39,600
q 3,370
E 0

Prepaid Insurance Utilities Payable

B 6,000 B 0
i 2,900 g 2,400
E 3,100 E 2,400

Raw Material Inventory Salaries Expense

B 150,000 B 0
a 6,000 c 11,330 j 7,500
b 5,200 E 7,500
E 149,870
Depreciation Expense: Office Equipment and Accumulated Depreciation: Office Equipment
Space and Space
Manufacturing Supplies Inventory B 0 B 0
B 600 k 4,500 4,500
c 120 E 4,500 E 4,500
E 480

Work in Process Inventory - Job T74 Work in Process Inventory Finished Goods Inventory Cost of Goods Sold
B 0 B 89,000 B 223,000 B 0
c 1,430 m 37,130 m 37,130 m 37,130 m 37,130 n 18,565 n 18,565 q 3,370
d 17,000 r 49,800 r 49,800 r 49,800 E 15,195
m 18,700 E 89,000 E 291,365
E 0

Work in Process Inventory - Job C41 Miscellaneous Expense

B 0 B 0
c 9,900 r 49,800 l 1,150
d 19,000 E 1,150
o 20,900
E 0
Accumulated Depreciation: Buildings and
Equipment Sales
B 99,000 B 0
e 13,000 n 27,360
E 112,000 E 27,360

Account Payable
B 14,500
a 6,000
b 5,200
E 25,700

Wages Payable
B 8,500
d 50,100
E 58,600
JOB COST SHEET
JOB T79
Ref. Raw Material Direct Labor MOH Applied Balance
c 1,430 1,430
d 17,000 17,000
m 18,700 18,700
37,130
JOB COST SHEET
JOB C41
Ref. Raw Material Direct Labor MOH Applied Balance
c 9,900 9,900
d 19,000 19,000
o 20,900 20,900
49,800
 Bandway Company
Cost of Goods Manufactured Statement
For the period ended 31 October XX

Direct Material:
Raw Material 1 October 150,000
+/+: Purchase during October 11,200
Raw Material Available for Use 161,200
-/-: Raw Material 31 October (149,870)
Raw Material Used 11,330

Direct Labor 36,000

Manufacturing Overhead
Indirect Material Used 120
Indirect Labor 14,100
Depreciation: Building and Equipment 13,000
Rent Expense: Warehouse 1,340
Utility Expense 2,400
Property Tax: Factory 2,370
Amortization of Prepaid Insurance: Factory 2,900
Total Manufacturing Overhead - Actual 36,230
+/+: Overapplied Manufacturing Overhead 3,370
Manufacturing Overhead 39,600

Total Manufacturing Cost 86,930

+/+: Work in Process Inventory 1 October 89,000
-/-: Work in Process Inventory 31 October (89,000)
Cost of Goods Manufactured 86,930
 Bandway Company
Cost of Goods Sold Statement
For the period ended 31 October XX

Finished Goods Inventory 1 October 223,000

+/+: Cost of Goods Manufactured 86,930
Cost of Goods Available for Sale 309,930
-/-: Finished Goods Inventory 31 October (291,365)
Overapplied Manufacturing Overhead (3,370)
Cost of Goods Sold 15,195
 Bandway Company
Income Statement
For the period ended 31 October XX
Sales 27,360
-/-: Cost of Goods Sold (15,195)
Gross Profit 12,165
Selling and Administrative Expenses
Salaries Expense (7,500)
Depreciation Expense: Office Equipment and Space (4,500)
Miscellaneous Expense (1,150)
Total Selling and Administrative Expenses (13,150)
Earning/ (Loss) Before Tax (985)