ACCY 202 1st Edition Lecture 11Outline of Last LectureI. Process Costing System1. ExampleII. Job Cost Record1. Direct Material2. Direct Labor3. Manufacturing OverheadIII. Page 1501. Direct or Indirect?IV. Shop CleanupV. Things to Remember1. WIP = DirectA. Raw Materialsi. Production Materials Traceable to Specific Jobsii. Production Materials Not Traceable to Specific Jobsiii. Non-Factory Items2. MOH = IndirectOutline of Current LectureI. Collection #41. Question 12. Question 2A. Requisition3. Question 3A. Indirect Cost4. Question 45. Question 56. Question 67. Question 78. Question 89. Question 9A. Idle TimeThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.10. Question 1011. Question 1112. Question 12Current LectureI. Collection #4: Journal Entries1. Question 1- Multiply the amount purchased times the amount for each board- 3,000 x $11 = 33,000Raw Materials 33,000Accounts Payable 33,000 2. Question 2A. Requisitioned means that they were taken off the shelf as raw materials and were put in line for production. From raw material to work in progressWIP 460Raw-Material 4603. Question 3A. Indirect costs = MOH Manufacturing OverheadMOH 100Raw Materials 1004. Question 4- Finding MOH: use amount used for MON/whole factory square feet. In this example, 75%. Then multiply .75*8,000 (building cost)Depreciation Expense 2,000MOH 6,000Accumulated Depreciation 8,0005. Question 5- Since 75% of the factory is MOH, that’s where the majority of the debited amount goes.Utilities Expense 175MOH 525Cash 7006. Question 6- Indirect laborMOH 100WIP 2,000W/P 2,1007. Question 7- Since money is owed, W/P goes up (credited), also since it’s not November yet so the pay day has not yet comeMOH 2,500W/P 2,5008. Question 8- 900 * .75 = 675, and they owe the money so the taxes are payableMOH 675Real Estate Tax Expense 225Property Tax Payable 9009. Question 9A. Idle time is always an indirect cost! Plus they still owe the money to employeesMOH 300W/P 30010. Question 10WIP 12,000W/P 12,00011. Question 11Finished Goods 14.400WIP 14.40012. Question 12Cost of Goods Sold 13,500Finished Goods 13,500Cost of Goods Sold 10,800Finished Goods