Problem 12-13A Job Order Costing System_Baucom Manufacturing Corporation

Problem
12-13A Job Order Costing System

Baucom
Manufacturing Corporation was started with the issuance of common stock for
$50,000. It purchased $7,000 of raw materials and worked on three job orders
during 2012 for which data follow. (Assume that all transactions are for fash
unless otherwise indicated.)

Direct Raw Direct

Materials Used Labor

Job
1 $1,000 $2,000

Job
2 2,000 4,000

Job
3 3,000 2,000

Total $6,000 $8,000

Factory
overhead is applied using a predetermined rate of $0.60 per direct labor
dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for
$10,000 cash. Baucom paid $400 for selling & administrative expenses.
Actual factory overhead was $4,300.

Required:

A.
Record
the preceding events in a horizontal statements model. The first event for 2012
has been recorded as an example. Net

Assets Equity Rev
– Exp = Inc

Cash+Raw
Mats+MOH+WIP+F.Gds=C.Stk+R.Ear[

$50,000 NA
NA NA NA =$50,000
NA NA –
NA = NA

B.
Reconcile all subsidiary accounts with their respective control accounts.

C.
Record the closing entry for over- or under applied manufacturing overhead in
the horizontal statements model, assuming that the amount is insignificant.

D.
Prepare a schedule of cost of goods manufactured and sold, an income statement,
and a balance sheet for 2012.

Check
Figures Given:
d. COGM: $14,100. NI: $3,900.