This document provides information about production costs and inventory for Lock-Down Company for April and May. It includes beginning and ending inventory amounts, raw material purchases, factory payroll costs, factory overhead costs, sales, and a predetermined overhead rate. Journal entries are required for factory payroll costs, direct labor usage, and indirect labor usage for May.

1. 221t13
Assi g nrrent Print Vieryv
1.
Exercise 15-9 Journal entries for labor L.A. P2
The following information is available for Lock-Dolvn
Company, which produces special-order security
products and uses a job order cost accounting system.
April 3i) May 31
lnr,entories
Rawmaterials $41,001) $ 47,000
Goods in process 10,701) 22,000
Finished goods 59,001) 30,600
Activties and information for May
Raw materials purchases (paid with cash) 190,000
Factory payroll (paid with cash) 415,000
Factory orerhead
lndirect materials 12,O0O
lndirect labor 75,000
Other owrhead costs 103,500
Sales (receircd in cash) 1,270,000
Predetermined owrhead rate based on direct labor cost 65%
1. Factory payroll costs in cash.

2. 2. Direct labor usage.
3. Jnd;rect labor usage.
Prepare joumal entries forthe abo,e e,ents forthe month of
May. (Orilit the '"$" sign in your rosponse.)
Erents General Joumal Debit Credit
1. 415,000
ffi 41s,ooo
2.
ffi
3.
ffi
View Hint #1
Worksheet
Fxerclse 15-9 Joumal entriesfor labor L.a. P2
2.
Exercise 15-4 Analysis of cost flows L.O. C2, P1 , P2, P3
As of the end of June, the job cost sheets at Racing Wheels,
lnc., show the following total costs
accumulated on three custom jobs.
Job 102 Job 103 Job 1O4
Direct materials $ 31,000 $ 65,000 $ 49,000
Direct labolt4,000 25,400 45,000
Owrhead 6,580 11,938 21,150
Job 1O2 was started in production in May and the following

3. costs w€'e assigned to it in May: direct
materials, $11,000; direct labor, $3,300; and or,erhead, $1,551.
Jobs 1l)3 and 104 are started in June.
Overhead cost is applied with a predetemined rate based on
direct lal)or cost. Jobs 102 and 103 are
fnished in June, and Job 104 is expected to be finished in July.
No rarrr materials are used indirectly in
June. Using this information, answer the following questions.
(Assum:) this company's predetemined
orerhead rate did not change across these months).
1. What is the cost of the raw materials requisitioned in June for
each (f the three jobs? iomii the "$"
sign in your respons.e,)
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2121113 Assignn€nt Print View
Job 102 $
Job 103 $
Job 104 $
2. How much direct labor cost is incuned during June for each
of the three jobs? {omit the ',$" sign in
y*ur resn:anse.)
Job 102 $
Job 103 $
Job 104 $
3. what predetermined or.rerhead rate is used during June?
{omit the "yJ'sign in yoirr response.}
Predetermined oerhead rate yo

4. 4. How much total cost is transfened to finished goods during
Jun€r? {Omit the ""g" sign in your
response.)
Total transfened cost $
View Hint #1
rorksheet
Exercise15-4Anatsr$oFcoslforysL.O.C2,P1,P2, |? ,r .,' e
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3.
€xercr'se 1 5-15 Overhead rate calculation, allocatian, and
analysis L.A. p3
Red Wing Company applies factory orcrhead based on direct
labor costs. The company incuned the
following costs during 2011: direct materials costs, $636,500;
direct labcr costs, 91,400,000; and fuctory
or,erhead costs applied, $588,000.
1. Determine the company's predetermined o,erhead rate for
year 201'1. {Omit the "Yo" sign in your
response.)
Predetermined oerhead rate %
2. lnthe Goods in Process ln€ntory accountfor year2A11, the
ending balance is $53,000 which includes
$21,000 in direct labor cost, determine the direct material cost.

5. {Omii ti.:e
.'$.. sign in your response.}
Direct materials costs $
3. ln the Finished coods lnentory account for year 2O11, the
ending balilnce is $337,420 which includes
$137,42O in direct material costs, determine the direct labor
costs anrJ overhead costs. iRound your
intermediate calculationsand final ansrersto the nearesf dollal
amount. Omit the "'$.'s;ign in
yaur response.)
Direct labor cost $
Facl9ry overheq! co9!s . I
Worksheel
Exercise ar Overhead rate calculation. aflocatien.
and annlysis L.Q. P3 : - ,k
4.
Exercise 15-11 Adjusting factory overhead L.O. P4
The following information is aailable for Lock-Down
Company, which produces special-order security
products and uses a job order cost accounting syslem.
April 30 May 31
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2t21t13

6. 5.
Beginning goods in Process
(From March) $
For APril
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lnvenlories
Raw materials
Goods in process
Finished goods
Actir,,ities and information for May
Raw materials purchases (paid with cash)
Factory payroll (paid with cash)
Factory or,erhead
lndirect materials
lndirect labor
Other o,erhead costs
Sales (receiied in cash)
Predetermined orerhead rate based on direct labor cosl
Assignmrril PrintVieur
$ 39,000 $ 9,000
11,200 20,000
66,000 38,000
189,000
420,OO0

7. 13,000
73,000
95,000
1,21 0,000
65%
Prepare the ioumal entry to allocate (close) orerapplied or
underapplied c',erhead to Cost of Goods Sold
{Omit the "$" sign in your response.}
General Joumal
Cost ofqoods sold l.
Worksheet
E"":r;ise 15-1 1 ACjusting faciary averheaC L.a. p4
Problem 1 5-1A Production costs computed and recorded;
repoLts prep,tred L.O. C2, P1 ' P2' P3, P4
[The fottowing information applies to the questions displayed
below.]
Winfey Co.'s March 31 inlentory of raw materials is $150,000.
Raw malerials purchases in April are
$400,000, and factory payroll cost in April is $235,000.
Or,ertread costs incuned in April are: indirect
materials, $26,000; indirect labor, $15,000; tuctory rent,
$19,000; factory ltilities, $14,000; and hctory
equipment depreciation, $63,000. The predetermined o.erhead
rate is 60% of direct labor cost. Job 306 is
sold for $350,000 cash in Apdl. Costs of the three iobs worked
on in April follt:rw'

8. Job 306 Job 307 Job 308
Balances on March 31
Direct materials
Direct labor
Applied owrhead
Costs during April
Direct materials
Direct labor
Applied orcrhead
Status on April 30
Debit Credit
$ '10,000 $ 16,000
17,000 15,000
'10,200 9,000
105,000
23,000
?
180,000 $ 115,000
57,000 1,10,000
??
Finished (sold) Finished (unsold) ln process
Section Break
Prcb lem 1 5-1 A ProCuctian costs cornpuled and

9. {ecorded: repofts prepared L.O. C?, P1 , P2, P3, P4
Prablem 15-14 Part 1
Required:
1. Determine ihe total of each production cost incuned for Aprff
(direct {alnr, direct materials, and applied
o,erhead), and the total cost assigned to each job (including the
balal'ces ftom March 31). {Leave no
cellsblank-trecertaintoenter"'0"wheleverrequired.Omitthe
$"dgninyourrespsnse.)
. -I -':-.;;,t.,, ,_^.^ ,d rnls for
307 308 APril Total
$$$
306
412
221113
6.
Problem 15-1A Fart 2
a. Materials purchases (on credit), factory payroll (paid in
cash), anr:. actual or,erhead costs including
indirect materials and indirect labor. (Factory rent and utilities
are paid in cash.)
b. Assignmeni of direct materials, direct labor, and applied

10. overhead costs to the Goods in Process
lnr€ntory.
c. Transfer of Jobs 306 and 307 to the Finished Goods
lnr,entory.
d. Cost ofgoods sold forJob 306.
e. Revenue ftom the sale of Job 306.
f. Assignment of any underapplied or oerapplied or.erhead to
the G:st of Goods Sold account. (The
amount is not material.)
2. Prcpate joumal entries forthe month of April to record the
above tra.tsactions. (Omit the "g" sign in
your response,)
General Journal Debit Credit
To record materials purchases.m
ffi
To record factory payroll.
ffi
ffi
To record indirect materials.
ffi
ffi
To record indirect labor.
ffi
ffi
To record factory rent.

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To record factory utilities.
ffi
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To record depreciation for factory equipment.
ffi
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b. To assign direct materials to jobs.
ffi
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To assign direct labor to jobs-
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Assi g nrrprt Print Visrrr
Direct materials
Direct labor
Applied or,erhead
Total costs added in April
Totalcosts $ $ $ $
Wofksheet
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Worksheet
7.
Problem 15-1A Part 3
Workshaet
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To apply olerhead to jobs.
ffi
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c. To record jobs completed.
ffi
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To record sale ofjob.
ffi
ffi

13. To assign Owr/Underapplied o€rhead.
ffi
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t.
Print Vierv
ffi
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To record cost of sale of iob.
3. Prepare a manufacturing statement forApril (use a single line
for direct materials and shorrv
the details of or,efiead cost.) (Amounts to be deducted sfrould
indicated with a minus sign.
Omit the "$" dgn in your response.)
',YJH:|J":'"HH"For Month Ended April 30
Total manufacturing c6ts
Total cost of goods in process
Cost of goods manufactured
iei i]usi
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2t21113 Assi g nn'ent Print Vienr

14. i^Problern 15-1APar13
8.
After examining rarious files, the manager identifies the
following six souttle documents that need to be
processed to b'ring the accounting records up to date'
Materials requisition 21-3010: $4,500 direct materials to Job
402
Materials requisilion 21-3011: $7,300 direct materials to Job
404
Materials requisition 21-3012: $1,800 indirect materials
Labor time ticket 6052: $7,000 direct labor to Job 402
Labortime ticket 6053: $3,000 direct laborto Job 404
Labor time ticket 6054: $5,000 indirect labor
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Problem 15-1 A Part 4
4.1 Compute gross profit forApril. {Omitthe "$" sign in your
response,}
Gross profit $
4.2 Show how to present the in,entories on the April 30 balance
sh(:et. {Orfiit the '"$" sign in y**r
response.)
lnrentories
Raw materials $
Goods in process (Job 308)
Finished goods (Job 307)

15. Total inentories
ProblemlS-
2ASaurcedacuments,iournalentries,overhead,andfinancialrepolts
L.O. P1,P2.P3,P4
[The foilowing information applies to the quesfions displayed
below.]
Thai Bay's computer system generated the following trial
balance on Deceinber 31, 2011. The company's
manager knows something is wrong with the trial balance
because it does rot show any balance for Goods
in Process ln,entory but does show balances for the Factory
Payroll and Fa,:tory Overhead accounts.
Debt Credit
Cash $ 47,000
Accounts receiable 41,000
Raw materials in,entory 25,500
Goods in process inentory 0
Finished goods inr,entory 12,000
Prepaid rent 4,000
Accounts payable $ 10,800
Notes payable 13,800
Common stock 40,000
Retained eamings 93,000
Sales 162,900
Cost ofgoods sold 116,000
Factory payroll 15,000
Factory or,erhead 25,000
Operating expenses 35,000
Totals $320,500 $320,500
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16. 2t21t13
9.
10.
Job6 402 and 4M are the only units in pmcess at year-end. The
direct labor cost.
Section Break Problem
15-2ASource
overhead, and financial
Problem 15-2A Part 1
a. DiEct materials costs to Goods in Procqss lnwntory.
b. Dircct labor costs to Goods in Process ln€ntory.
c. Orerhead costs to Goods in Prccess lnr€ntory.
d. lndirect materials costs to the Factory Oerhead account.
e. lndirect labor costs to the Factory Orcrhead account.
Required:
'1. Prepare joumal entries lo assign the above costs. (Omit the
"$" dgn
PrintVienr
otrhead rate is 30oo/o of
your response,)
Date General Joumal
a.ffi

17. ffi
b.ffi
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c.ffi
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d.ffi
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e.ffi
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ll9orksheet
Problem 15-2AParl1
Problem 15-24 Part 2
2.1 Detemine the reised balance of the Factory O€rhead
account
Determine yrtrether there is any under- or oerapplied olerhead
positive values Omit the '$* sign in your response.)
t(oi"k t" "d".t) f-] $
2.2 [email protected] the adjusting entry to allocate any oer- or
undempplied
assuming the amount is not material. {Omit fie '$' dgn in your
Date General Jomd
Dec.31 ffi
ffi

18. cledit
l lorksheet
Problem 15-2APaft2
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making the entries in part 1.
year. (lnput all amounts as
to Cost of Goods Sold,
.)
Debit ctedit
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11.
12.
Problem 15-24 Part 3

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Totals
Worksheet
Problem 15-24 Parl3
Problem 15-2A Part 4
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Assets
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20. 3. Prepare a rerised trial balance. (fhe items in the Trial Bal
4.1 Prepare an incorne stat€rnent br year 201 1. {Amounts to be
be indicated with minus dgn. Omit the "$" sign in your
THAI BAY COMPANY
lncome Statement
For Year Ended December 31, 201 1
4.2 Prcparc a balance sheet as of Decernber 31, 2011. {Be sure
to
order of their liquidity. Omit the "$'sign in your response.)
THAI BAY COMPANY
Balance Sheet
December3l,2011
Assets Liabilities (in order of their liquidity), Equity,
blank - be certain to enter "0" wherever required. Omit the sign
in your response.)
THAI BAY COMPANY
Trial Balance
December 31, 201 I
PrintVialtl
should be grouped as follows;
and Expenses Leave no cells
and nel loss amount sfiould
the assets and liabilities in

21. - -ts
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$
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lnrentories
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Total Assets
Liabilities and Equity
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Total Liabilities
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Total Stockholders' Equity
Total Liabilities and Equity
Worksheet

22. Problem 1 5-2A Pan 4
I
." i.;-.
Problem 15-3A Source documents, iaurnal entries, and accounts
in jot'.t order cost accounting L.O. p1 , p2, p3
[The foilowing information applies to the questions disptayed
below.]
Westin Watercraft's predetermined or,erhead rate for year 2O11
is 20O% of tJirect labor. lnformation on the
company's production activities during May 2011 follows.
a. Purchased raw materials on credit, $200,000.
b. Paid $128,9O0 cash for factory wages.
c. Paid $15,500 cash to a compuler consultant to reprogram
factory equipmt:nt_
d. Materials requisitions record use of the following materials
for the month.
Job 136
Job 137
Job 138
Job 139
Job 140
Total direct materials
lndirect materials
Total materials used
Job 136
Job 137
Job 138

23. Job 139
Job 14O
Total direct labor
lndirect labor
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$ 49,000
32,000
1 9,200
22,600
6,600
't29,400
21,400
$1 s0,400
e. 'llme tickets record use of the following labor for the month
$ 12,100
'10,800
38,100
39,200
t'^
103,400
25,500
10
to

24. 9112
221t13
Total
expircd factory insurance).
Depreciation of factory building
Depreciation of iactory equipment
Expired factory insurance
Accrued pmperty taxes payable
Section Break
13.
Probtem 1 5-3A Part I
Required:
'1. Prepare a job cost
response,)
Materials
Labor
Orefiead
Total cost
Worksheet
Problem 1 5-3A Paft 1

25. 14. '-;,:-
Prablem 15-3A Part 2
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lU12
$1 28,900
f. Applied owrhead to Jobs 136, 138, and 139.
g. Transfuired Jobs 136, 138, and '139 to Finished Goods.
h, Sdd Jobs 136 and 138 on crcdit at a total price of$S35,0O0-
i. The company incuned the trlowing orcrhead costs during the
$ 68,000
36,500
12,000
36,500
i. Applied orefiead at month-end to the Goods in Process (Jfu
137
o,erhead rate of 2ffiYo of direct labd cost.
stleet for each job worked on during the
Job No. 136 Job No. 137 Job No.
2. Prepare joumal entries to record the e,ents and transactions a
response. )
General Joumal
io
to

26. to
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PrintView
(credit Prepaid lnsurance fur
140) using the predetermined
lournal enties,
cost accounting L.O. Pl , P2,
(Omit the *$"
Jd.!!o. 113!
$ - -.
dgn in your
.Job-.ry.o,!4
/'. (Omit the '$" sign in your
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I
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27. 15. '' 70
to
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to
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Problem 1 5-3A Pan 2
Problem 15-3A Part 3
3. Prepare T-accounts for each ofthe folloiving general ledger
each of which started the month
with a zero balance: Raw Materials lnrentory, Goods in process
Factory Payroll, Factory Oerhead, Cost of Goods Sdd. Then
tory, Finished Goods lnentory,

28. the joumal entries to these T-
accounls and detemine the balance d each accourt {Record the
sactions in lhe given order.
Leave no cells blank - be certain to enter "0,. wherever
response.)
Omit the '$" Sgn in your
GENERAL LEDGER ACCOUNTS
Raw Materials
Goods in Process
(Click to selectli v
kdfrt"lGtT-n
Itol*;E-eqrlT;l_ry
Bal-
=__..__fe:try
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Bal.
:
Worksheet
Problem 15-3A Patl3
Problem 15-3A Part 4
4. Prepare a repqt showing the total ccst of each job in process
equals the Goods in Process lnrentory account balance. Prepare

30. ln,entory and Cost of Goods Sold. (Omit the "$" sign in your re
Reports ofJob Costs
Goods in Process lnr,entory
[email protected];J"qtII
l€tbki;"d.irtr]
Balance
Finished Goods ln€ntory
[email protected]"-6R
Balance
Cct of Goods Sdd
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Balance
Worksheet
Problem 15-3A Pan 4
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t.---. ,,. . . _. :-:
, ' ,:' -1, ,/ _.a' -/ ,..-). .,r,- .,1..".:.iire-,
that the sum of their costs
reports for Finished Goods

31. '.-:;adut