Valix Finacc vol 1 Problem 15-19

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 15 Problem 15-19

a. Materials                                                                                                               500,000              

    Direct labor                                                                                                      1,000,000    

    Overhead                                                                                                             600,000            

    Cost of machinery                                                                                             2,100,000        

                       

    Overhead                                                                                                          3,600,000

    Charged to finished goods (75% x 4,000,000)                                                    3,000,000

    Charged to machinery                                                                                        600,000

b. Materials                                                                                                               500,000   

    Direct labor                                                                                                      1,000,000            

    Overhead (1/5 x 3,600,000)                                                                                   720,000         

    Cost of machinery                                                                                             2,220,000                                           

    Direct labor:

Finished goods                                                                                    4,000,000            4/5

                Machinery                                                                            1,000,000            1/5

                                                                                                            5,000,000