ATTACHMENT PREVIEW

Chapter 4 and 5 Problems
Please complete the following 7 exercises below in either Excel or a word document (but must be
single document). You must show your work where appropriate (leaving the calculations within Excel
cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment
Submission button.
Chapter 4 Exercise 3
3.
Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined
rate of 180% of direct labor cost. Data pertaining to recent operations follow.

Job no. 636 was the only job in process on January 1 of the current year. The Work in Process
account contained a \$24,600 balance on this date.

Jobs no. 637, 638, and 639 were started during January.

Total direct material requisitions and direct labor incurred during January amounted to \$89,200
and \$114,500, respectively.

The only job that remained in process on January 31 was job no. 638, with costs of \$15,000 for
direct materials and \$20,000 for direct labor.
a.
Compute the total cost of the work in process inventory on January 31.
b.
Compute the cost of jobs completed during January, and present the proper journal entry to
reflect job completion.
Chapter 4 Exercise 7
7.
The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following
divisional information is presented for your review:
Division
A
Divisio
n B
Actual machine hours
22,500
?
Estimated machine hours
20,000
?
\$4.50
\$5.00
\$110,00
0
?
?
\$90,000
?
\$86,000

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Over- (under-) applied
?
\$6,500
FIND THE UNKNOWNS FOR EACH OF THE DIVISIONS.
Chapter 4 Problem 2
2.
Computations using a job order system
General Corporation employs a job order cost system. On May 1 the following balances were extracted
from the general ledger;
Work in process
\$ 35,200
Finished goods
86,900
Cost of goods sold
128,700
Work in Process consisted of two jobs, no. 101 (\$20,400) and no. 103 (\$14,800). During May, direct
materials requisitioned from the storeroom amounted to \$96,500, and direct labor incurred totaled
\$114,500. These figures are subdivided as follows:
Direct
Materi
als
Direct Labor
Job No.
Amount
Job No.
Amount
101
\$5,000
101
\$7,800
115
19,500
103
20,800
116
36,200
115
42,000
Other
35,800
116
18,000
\$96,500
Other
25,900
\$114,500
Job no. 115 was the only job in process at the end of the month. Job no. 101 and three “other” jobs were
sold during May at a profit of 20% of cost. The “other” jobs contained material and labor charges of
\$21,000 and \$17,400, respectively.

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