Complete problems on sourcing documents, preparing journal entries, calculating overhead, and completing financial reports. Introduction Note: Accounting requires specific steps tha

 

Complete problems on sourcing documents, preparing journal entries, calculating overhead, and completing financial reports.

Introduction

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

A job order cost system is used when manufacturing different products.

Instructions

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Use the Job Order Cost System Template [XLSX] to complete this assessment. Based on the data provided in the template, complete the problems on sourcing documents, preparing journal entries, calculating overhead, and completing financial reports.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

  • Competency 1: Analyze cost accounting systems.
    • Prepare a revised trial balance.
    • Prepare a balance sheet.
  • Competency 2: Apply sound budgeting principles.
    • Prepare journal entries using source information.
    • Revise factory overhead account and prepare the adjusting entry to identify any over- or under-applied overhead to COGS.
  • Competency 4: Analyze financial statements.
    • Prepare an income statement.
  • Competency 5: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.
    • Communicate quantitative information accurately and effectively.

Problem 1

BUS-FPX4061 – Managerial Accounting Principles
Assessment 3: Job Order Cost System Worksheet
Problem 1 Input values
Solve the given problem based on the following information.
The trial balance for Jordan Company on December 31, 2017, is incorrect. The accounting Company name Jordan
department was able to identify this error because there are zero inventories for goods Date of trial balance 12/31/17
in process, but facility payroll and facility overhead accounts are showing balances.
Incorrect Jordan Company Trial Balance (for the year ended December 31, 2017) Incorrect Jordan Company Trial Balance (for the year ended December 31, 2017)
Category Debit ($) Credit ($) Category Debit ($) Credit ($)
Cash 112,200 Cash 112,200
Accounts receivable 82,500 Accounts receivable 82,500
Raw materials inventory 88,000 Raw materials inventory 88,000
Goods in process inventory 0 Goods in process inventory 0
Finished goods inventory 16,500 Finished goods inventory 16,500
Prepaid rent 3,300 Prepaid rent 3,300
Accounts payable 18,700 Accounts payable 18,700
Notes payable 27,500 Notes payable 27,500
Common stock 55,000 Common stock 55,000
Retained earnings 298,100 Retained earnings 298,100
Sales 410,300 Sales 410,300
Cost of goods sold 239,800 Cost of goods sold 239,800
Facility payroll 74,800 Facility payroll 74,800
Facility overhead 126,500 Facility overhead 126,500
Operating expenses 66,000 Operating expenses 66,000
Totals 809,600 809,600 Totals 809,600 809,600
The accounting department has identified six documents that must be processed in order
to update the trial balance. The following six entries must be posted to the trial balance:
Missing Entries in Trial Balance Missing Entries in Trial Balance
1 Materials requisition 10 $11,220 direct materials to Job X Materials requisition 10 direct materials to Job X $11,220
2 Materials requisition 11 $20,460 direct materials to Job Y Materials requisition 11 direct materials to Job Y $20,460
3 Materials requisition 12 $6,160 indirect materials Materials requisition 12 indirect materials $6,160
4 Labor time ticket 6052 $39,600 direct labor to Job X Labor time ticket 6052 direct labor to Job X $39,600
5 Labor time ticket 6053 $26,180 direct labor to Job Y Labor time ticket 6053 direct labor to Job Y $26,180
6 Labor time ticket 6054 $9,020 indirect labor Labor time ticket 6054 indirect labor $9,020
Prepare journal entries using the data from the table above to assign costs. % of direct labor cost allocated as factory overhead to Job X and Job Y 200%
Journal Entries
TRUE
A. Direct materials costs to goods in process inventory:
Dec. 31 Goods in Process Inventory
Raw Materials Inventory
B. Direct labor costs to goods in process inventory:
Dec. 31 Goods in Process Inventory
Factory Payroll
C. Overhead costs to goods in process inventory:
Dec. 31 Goods in Process Inventory
Factory Overhead
To allocate overhead costs to Jobs X and Y at 200%
of direct labor cost assigned.
D. Indirect materials costs to the facility overhead account:
Dec. 31 Factory Overhead
Raw Materials Inventory
E. Indirect labor costs to the facility overhead account:
Dec. 31 Factory Overhead
Factory Payroll

Problem 2

Problem 2 Input values
Solve the given problem based on the following information.
The trial balance for Conglomco Company on December 31, 2012, is incorrect. The accounting Company name Conglomco
department was able to identify this error because there are zero inventories for goods Date of trial balance 12/31/12
in process, but facility payroll and facility overhead accounts are showing balances.
Incorrect Conglomco Company Trial Balance (for the year ended December 31, 2012) Incorrect Conglomco Company Trial Balance (for the year ended December 31, 2012)
Category Debit ($) Credit ($) Category Debit ($) Credit ($)
Cash 112,200 Cash 112,200
Accounts receivable 82,500 Accounts receivable 82,500
Raw materials inventory 88,000 Raw materials inventory 88,000
Goods in process inventory 0 Goods in process inventory 0
Finished goods inventory 16,500 Finished goods inventory 16,500
Prepaid rent 3,300 Prepaid rent 3,300
Accounts payable 18,700 Accounts payable 18,700
Notes payable 27,500 Notes payable 27,500
Common stock 55,000 Common stock 55,000
Retained earnings 298,100 Retained earnings 298,100
Sales 410,300 Sales 410,300
Cost of goods sold 239,800 Cost of goods sold 239,800
Facility payroll 74,800 Facility payroll 74,800
Facility overhead 126,500 Facility overhead 126,500
Operating expenses 66,000 Operating expenses 66,000
Totals 809,600 809,600 Totals 809,600 809,600
The accounting department has identified six documents that must be processed in order
to update the trial balance. The following six entries must be posted to the trial balance:
Missing Entries in Trial Balance Missing Entries in Trial Balance
1 Materials requisition 10 $11,220 direct materials to Job X Materials requisition 10 direct materials to Job X $11,220
2 Materials requisition 11 $20,460 direct materials to Job Y Materials requisition 11 direct materials to Job Y $20,460
3 Materials requisition 12 $6,160 indirect materials Materials requisition 12 indirect materials $6,160
4 Labor time ticket 6052 $39,600 direct labor to Job X Labor time ticket 6052 direct labor to Job X $39,600
5 Labor time ticket 6053 $26,180 direct labor to Job Y Labor time ticket 6053 direct labor to Job Y $26,180
6 Labor time ticket 6054 $9,020 indirect labor Labor time ticket 6054 indirect labor $9,020
Once you have completed the journal entries, create a revised balance for the facility % of direct labor cost allocated as factory overhead to Job X and Job Y 200%
overhead account, reflecting the changes. Is there any under- or overapplied overhead
for the year? Allocate any over- or underapplied overhead to the cost of goods
sold in the adjusted entries. (Assume the amount is not material.)
Revised Facility Overhead Account
Debit/Credit
Ending balance from trial balance
Applied to Jobs X and Y
Additional indirect materials
Additional indirect labor
Underapplied overhead
Dec. 31 Cost of Goods Sold
Factory Overhead

Problem 3

Problem 3 Input values
Solve the given problem based on the following information.
The trial balance for Jordan Company on December 31, 2017, is incorrect. The accounting Company name Jordan
department was able to identify this error because there are zero inventories for goods Date of trial balance 12/31/17
in process, but facility payroll and facility overhead accounts are showing balances.
Incorrect Jordan Company Trial Balance (for the year ended December 31, 2017) Incorrect Jordan Company Trial Balance (for the year ended December 31, 2017)
Category Debit ($) Credit ($) Category Debit ($) Credit ($)
Cash 112,200 Cash 112,200
Accounts receivable 82,500 Accounts receivable 82,500
Raw materials inventory 88,000 Raw materials inventory 88,000
Goods in process inventory 0 Goods in process inventory 0
Finished goods inventory 16,500 Finished goods inventory 16,500
Prepaid rent 3,300 Prepaid rent 3,300
Accounts payable 18,700 Accounts payable 18,700
Notes payable 27,500 Notes payable 27,500
Common stock 55,000 Common stock 55,000
Retained earnings 298,100 Retained earnings 298,100
Sales 410,300 Sales 410,300
Cost of goods sold 239,800 Cost of goods sold 239,800
Facility payroll 74,800 Facility payroll 74,800
Facility overhead 126,500 Facility overhead 126,500
Operating expenses 66,000 Operating expenses 66,000
Totals 809,600 809,600 Totals 809,600 809,600
The accounting department has identified six documents that must be processed in order
to update the trial balance. The following six entries must be posted to the trial balance:
Missing Entries in Trial Balance Missing Entries in Trial Balance
1 Materials requisition 10 $11,220 direct materials to Job X Materials requisition 10 direct materials to Job X $11,220
2 Materials requisition 11 $20,460 direct materials to Job Y Materials requisition 11 direct materials to Job Y $20,460
3 Materials requisition 12 $6,160 indirect materials Materials requisition 12 indirect materials $6,160
4 Labor time ticket 6052 $39,600 direct labor to Job X Labor time ticket 6052 direct labor to Job X $39,600
5 Labor time ticket 6053 $26,180 direct labor to Job Y Labor time ticket 6053 direct labor to Job Y $26,180
6 Labor time ticket 6054 $9,020 indirect labor Labor time ticket 6054 indirect labor $9,020
Prepare the updated trial balance reflecting the changes from the adjusted entries. % of direct labor cost allocated as factory overhead to Job X and Job Y 200%
Revised Jordan Company Trial Balance (for the year ended December 31, 2017)
Category Debit ($) Credit ($)
–
Totals –
Raw Materials Inventory
Goods in Process Inventory
Job X Job Y Total

Problem 4

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Problem 4 Input values
Solve the given problem based on the following information.
The trial balance for Jordan Company on December 31, 2017, is incorrect. The accounting