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    Cloudy Glass Manufacturing Company Accounting Task

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    Work order 30 for Cloudy Glass Manufacturing incurred $15,000 in direct materials costs and $3,000 in indirect materials costs. Labor costs totaled $5,000 for direct labor and $5,000 for indirect labor. Depreciation expenses included $1,600 for the factory building, $2,400 for the factory lease, and $1,500 for machinery. Indirect manufacturing overhead is applied at a rate of 90% of the total costs of $17,500. $17,500 of inventory was transferred.

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    Cloudy Glass Manufacturing Company Accounting Task

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    Work order 30 for Cloudy Glass Manufacturing incurred $15,000 in direct materials costs and $3,000 in indirect materials costs. Labor costs totaled $5,000 for direct labor and $5,000 for indirect labor. Depreciation expenses included $1,600 for the factory building, $2,400 for the factory lease, and $1,500 for machinery. Indirect manufacturing overhead is applied at a rate of 90% of the total costs of $17,500. $17,500 of inventory was transferred.

    Original Description:

    Cloudy Glass Manufacturing Company purchased materials on credit for $22,000.00

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    Work order 30 for Cloudy Glass Manufacturing incurred $15,000 in direct materials costs and $3,000 in indirect materials costs. Labor costs totaled $5,000 for direct labor and $5,000 for indirect labor. Depreciation expenses included $1,600 for the factory building, $2,400 for the factory lease, and $1,500 for machinery. Indirect manufacturing overhead is applied at a rate of 90% of the total costs of $17,500. $17,500 of inventory was transferred.

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    © All Rights Reserved
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    41 views5 pages

    Cloudy Glass Manufacturing Company Accounting Task

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    ScribdTranslations
    Work order 30 for Cloudy Glass Manufacturing incurred $15,000 in direct materials costs and $3,000 in indirect materials costs. Labor costs totaled $5,000 for direct labor and $5,000 for indirect labor. Depreciation expenses included $1,600 for the factory building, $2,400 for the factory lease, and $1,500 for machinery. Indirect manufacturing overhead is applied at a rate of 90% of the total costs of $17,500. $17,500 of inventory was transferred.

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    EXERCISE 5.

    Cloudy Glass Manufacturing Company purchased materials


    from cre. Work order 30 required direct materials for $15,000
    Direct Materials for $15,000.00.
    Indirect Materials for $ 3,000.00
    Work order 30 incurred a labor cost of $ 5,000.00 indirect labor
    cost $ 5,000.00 depreciation on factory building $ 1,600.00
    depreciation on factory lease $ 2,400.00 depreciation on
    machinery $ 1,500.00
    Indirect manufacturing overhead is applied at a rate of 90% of
    the cost of $17,500 of inventory was transferred.

    Record this information in the T-accounts.


    Item # 1
    Materials Inventory 22,000
    Accounts payable 22000

    Inventory PM
    MUST HAVE
    22,000 MPD
    15,000 3000 MPI
    22,000 18,000
    4,000

    Game #2
    Materials Inventory in Proc $15,000.00
    CIF Control $ 3,000.00
    Materials Inventory $ 18,000.00

    M.P. WORK ORDER # 30


    MUST HAVE
    MOD
    15,000 3000 18,000 0 MOI
    18,000 18,000
    0
    Item # 3
    Materials Inventory in Proc $ 12,000.00
    VAT ID $ 5,000.00
    Payroll due $ 17,000.00

    M.O. WORK ORDER # 30


    MUST HAVE
    12,000
    5000 17,000 0
    17,000 17,000

    Item # 4
    Cipher control $ 1500.00
    Machinery Depreciation $ 1500.00

    Item # 5
    Product Inventory in Proc $ 10,800
    VAT ID $ 10,800
    only 90% of $12,000.00

    Item # 6
    Product Inventory Ends $ 37,800.00
    Product Inventory in pr ocess $ 37,800.00

    Item # 7
    Accounts receivable $20,000.00
    Sales revenue $ 20,000.00
    22,000.00 .00 straight $12,000.00 cost of direct labor
    of work in process and sold on credit for $ 20,000.00

    ce perpetual system and assume that no initial inventories are available.


    Exercise 5.4

    Hungry Frozen Company operates a job order costing system.


    The following information was available for the month of June :
    work in process inventory as of June 1 was $ 12,500.00
    raw materials purchased amounted to $ 15,000.00
    the required materials had a value of $ 11,000.00
    3,000.00 of which $ 3,000.00 were indirect .
    Payroll for the month was $ 36,000.00, $ 12,000.00 of which was indirect.
    Actual indirect manufacturing costs were $42,000.
    Indirect manufacturing costs are applied at a direct labor cost of 85% June work orders
    were completed at a total cost of $52,000.
    Work orders with costs of $76,000 were sold with a profit margin of $76,000 and a profit
    margin of $76,000.

    A. Prepare journal entries for the above transactions.


    B.Calculate the value of work in process inventory as of June 30.
    .in

    30% of the cost.

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