Subsidiary Ledgers

Exhibits 4-8 and 4-9 present subsidiary ledgers that contain the underlying details—the “worm’s-eye view”—of the “bird’s-eye view” of the general ledger. Subsidiary ledgers help Robinson’s managers track individual jobs such as the WPP 298 job. The sum of all entries in the underlying subsidiary ledgers equals the total amounts in the corresponding general ledger control accounts.

Exhibit 4-8

Subsidiary Ledgers for Materials, Labor, and Manufacturing Department Overhead1

Exhibit shows the subsidiary ledgers for materials, labor, and manufacturing department overhead illustrated under three panels, A, B, and C.

The details of the three panels are as follows:

Panel A

  1. It shows the materials records by type of materials.

  2. The metal brackets part number of panel A is MB 468-A.

  3. It has three categories such as received, issued, and balance.

    • Received consists of copies of invoices or receiving reports. The total cost of all types of materials received in February is $89,000.

    • Issued consists of copies of materials requisition records and has the date as 2-6, req. number as 2017:198, quantity as 8, rate as $14, and amount as $112. The total cost of all types of materials issued in February is $85,000.

    • Balance is shown as blank.

Panel B

  1. It shows the labor records by employee.

  2. The G. L. Cook Employee number under panel B is 551-87-3076.

  3. It has five categories such as week ending, job number, hours worked, rate, and amount.

    • Week ending data given are 2-12 and 2-19.

    • Job number is WPP 298 JL 256 maintenance.

    • Hours worked are 25, 12, and 3 and depicts of copies of labor-time sheets.

    • Rates are $18, $18, and $18.

    • Amount data are $450, $216, and $54 with a total of $720.

    • The total cost of all direct and indirect manufacturing labor incurred in February is $54,000 which is a sum of $39,000 and $15,000.

Panel C

  1. It shows the manufacturing department overhead records by month.

  2. The month considered is February 2020.

  3. It has five categories such as indirect material issued, indirect manufacturing labor, supervision and engineering, plant insurance and utilities, and plant depreciation.

    • Indirect material issued depicts the copies of materials requisitions and has a total of $4,000.

    • Indirect manufacturing labor depicts the manufacturing labor-time record or payroll analysis and has a total of $15,000.

    • Supervision and engineering, plant insurance and utilities, and plant depreciation depict the payroll analysis, invoices, and special authorizations. Their cost details are:

    • Supervision and engineering: $44,000

    • Plant insurance and utilities: $13,000

    • Plant depreciation: $18,000

    • As a result, the other manufacturing overhead costs incurred in February is $75,000

Exhibit 4-9

Subsidiary Ledgers for Individual Jobs1

Exhibit shows the subsidiary ledgers for individual jobs under two panels A and B.

The details of the two panels are as follows:

Panel A

  1. It shows the work-in-process inventory records by jobs.

  2. The job number is WPP 298.

  3. It consists of three categories such as in-process, completed, and balance.

    1. The components of in-process category are date, direct materials, direct manufacturing labor, allocated manufacturing overhead, and total cost.

    2. Direct materials depict copies of materials-requisition records, direct manufacturing labor depicts copies of labor-time sheets, and allocated manufacturing overhead depicts budgeted rate multiplied by actual direct manufacturing labor-hours.

    3. The details of the in-process components are as follows:

      • Date: 2-6; direct materials: 112 dollars; total cost: 112 dollars

      • Date: 2-12; direct manufacturing labor: 450 dollars; total cost: 450 dollars

      • Date: 2-28; total direct materials: 4,606 dollars; direct manufacturing labor: 1,579 dollars; allocated manufacturing overhead: 3,520 dollars; total cost: 9,705 dollars

    4. The components of completed category are date and total cost. Its details are as follows:

      • Date: 2-28; total cost: 9,705 dollars

      • The total cost depicts completed job-cost record.

    5. The components of balance category are date and total cost. Its details are as follows:

    Date: 2-28; total cost: 0 dollars

  4. The total cost of direct materials issued to all jobs in February is 81,000 dollars.

  5. The total cost of direct manufacturing labor used on all jobs in February is 39,000 dollars.

  6. The total manufacturing overhead allocated to all jobs in February is 80,000 dollars.

  7. The total cost of all jobs completed and transferred to finished goods in February is 188,800 dollars.

Panel B

  1. It shows the finished goods inventory records by job.

  2. The job number is WPP 298.

  3. It consists of three categories such as received, issued, and balance.

    1. Received depicts the completed job-cost record. The details of received are:

      • Date: 2-28; amount: 9,705 dollars

    2. Issued depicts the costed sales invoice. The details of issued are:

      • Date: 2-28; amount: 9,705 dollars

    3. The details of balance are:

      • Date: 2-28; amount: 0 dollars

    4. The total cost of all jobs transferred to finished goods in February is 188,800 dollars.

    5. The total cost of all jobs sold and invoiced in February is 180,000 dollars.