1. Assigning Costs to Jobs: Pawnee Workshops.
7-18
Assigning Costs to Jobs: Pawnee Workshops. 1.
Materials Inventory
16,000
Accounts Payable 2.
Manufacturing Overhead Control
800
Materials Inventory 3.
11,200 4.
Accounts Payable
Cash 5.
Work-in-Process—Direct Materials
13,600 6.
Work-in-Process—Direct Labor
20,000
Wages Payable 7.
21,200 8.
Work-In-Process— Overhead ($20,000 x 125%)
25,000
Applied Manufacturing Overhead 9.
10,000
Accumulated Depreciation—Property, Plant, and Equipment
10,000

2. The Inventory Accounts and Cost Flows
Materials
Work-In-Process
Finished Goods
Beg. Inventory
Beg. Inventory
Beg. Inventory
Cost of Goods Completed and Transferred from WIP + +
Purchases
Direct Materials Transferred from Raw Materials +
Materials Available for Production =
Direct Labor +
Goods Available for Sale =
Manufacturing Overhead +
Materials T’ferred to WIP or OH Control -
Raw Materials Transferred to
Cost of Goods Sold -
Total Manufacturing Costs =
Ending Inventory =
Ending Inventory =
Cost of Goods Completed and Transferred to Finished Goods -
Cost of Goods Completed and Transferred to Finished Goods -
To the income statement
Overhead Account(s)
Ending Inventory =

3. Pr continued

4. 7-18 concluded Stated otherwise: CGS= BIFG +Goods Completed –EIFG

5. 7-21. (25 min.) Assigning Costs to Jobs: Cardinals, Inc.
a. $96,000, the credit side of the Materials Inventory account.
b. $72,000.
Direct labor $90,000
Labor rate $30 per hour
Direct labor-hours $90,000/$30 = 3,000 hours
Manufacturing overhead applied ,000 x $24 = $72,000
c. $180,000, the debit addition to the Finished Goods Inventory account.
d. $138,000.
BB + TI – TO = EB
EB = $60,000 + ($96,000 + $90,000 + $72,000) – $180,000 EB = $138,000
$6,000 (underapplied) = $78,000 – $72,000.
$96,000.
Sales
Cost of Goods Solda $126,000
$270,000
S&A costs ,000
174,000
Operating profit
$96,000

6. 7-21 concluded f.
$96,000.
Sales
Cost of Goods Solda $126,000
$270,000
S&A costs ,000
174,000
Operating profit
$96,000
a The credit from Finished Goods Inventory for $120,000 plus $6,000 underapplied overhead.

7. e. 7-23. Assigning Costs to Jobs: Pine Ridge Corporation.
$190,000, the credit side of the Materials Inventory account. (There are no indirect materials!)
$5,000 underapplied (= $155,000 Control – $150,000 Applied).
DL cost is the basis, so: 80% (= $150,000 Applied ÷ $187,500 Direct Labor Cost).
$345,000, the debit addition to the Finished Goods Inventory account. e.
BB + TI – TO = EB
EB = $100,000 + ($190,000 + $187,500 + $150,000) – $345,000 EB = $282,500

8. 7-23 concluded

9. 7-24

11. 7-26

12. 7-35

13. Ex. 7-38

15. (55 min.)
Tracing Costs In A Job Company: Dungan Cabinetry