Scribd
Upload
46 views

Assignment #M1 - JOC

The document provides information about job order costing for multiple companies. It includes details on overhead application, predetermined overhead rates, job costs, inventory balances, and journal entries. Specifically, it discusses overhead under/overapplication for two months, computes predetermined overhead rates and total job costs, calculates inventory balances, and provides journal entries to record labor costs, assign overhead, and complete a job.

Uploaded by

Jerick Lloyd Abela
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
46 views

Assignment #M1 - JOC

The document provides information about job order costing for multiple companies. It includes details on overhead application, predetermined overhead rates, job costs, inventory balances, and journal entries. Specifically, it discusses overhead under/overapplication for two months, computes predetermined overhead rates and total job costs, calculates inventory balances, and provides journal entries to record labor costs, assign overhead, and complete a job.

Uploaded by

Jerick Lloyd Abela
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 10

JOB ORDER COSTING

ASSIGNMENT

1. During 2019, Bar Company incurred the following direct labor costs: January Php20,000 and
February Php30,000. Arb uses a predetermined overhead rate of 120% of direct labor cost.
Estimated overhead for the 2 months, respectively, totaled Php19,500 and Php35,700. Actual
overhead for the 2 months, respectively, totaled Php24,500 and Php32,500.

Instructions
Determine if overhead is over- or underapplied for each of the two months and the respective
amounts.

1.)
January February
20,000 30,000
120% 120%
24,000 36,000

24,000 36,000
24,500 32,500
-500 underapplied 3,500 overapplied

2.GenSan Manufacturing is a small manufacturer that uses machine-hours as its activity base
for assigned overhead costs to jobs. The company estimated the following amounts for 2019
for the company and for Job 62:

Company Job 62
Direct materials Php60,000 Php4,500
Direct labor Php25,000 Php2,500
Manufacturing overhead costs Php72,000
Machine hours 80,000 1,350

During 2013, the actual machine-hours totaled 84,000, and actual overhead costs were
Php71,000.

Instructions

(a) Compute the predetermined overhead rate.


(b) Compute the total manufacturing costs for Job 62.
(c) How much overhead is over or underapplied for the year for the company? State amount and
whether it is over- or underapplied.
(d) If GenSan Manufacturing sells Job 62 for Php14,000, compute the gross profit.
a.
Manufacturing Overhead Costs 72,000
Machine Hours 80,000
Predetermined Overhead Rate 0.9

b. Direct Materials 4,500


Direct Labor 2,500
Manufacturing Overhead (1350*0.9) 1,215
Total Manufacturing Costs 8,215

c.
Actual Machine Hours 84,000 multiply
Predetermined Overhead Rate 0.9
Applied Overhead 75,600

Actual Overhead 71,000


4,600 overapplied

d. Sales 14,000
Less:Manufacturing cost -8,215
Gross Profit 5,785
Php20,000 and 3. Gardenia Company begins the month of March with Php17,000 of w
t labor cost. from Job 324. Information from job cost sheets shows the following ad
35,700. Actual during March, April, and May of 2019:

Manufacturing Costs Assigned


he respective
Job No. March April May

324 26,000
325 20,000 28,000 15,000
326 41,000 11,000
327 16,000 34,000
328 29,000 51,000

Job 324 was completed in March. Jobs 325 and 327 were completed
completed in April. Jobs are sold during the month after completion. T
during the 3-month period is Php145,000.

Instructions
s activity base Calculate the balances of the work in process and finished go
unts for 2019 May.

April May
Job 328 29,000 51,000
80,000 work in process

March April May


Job 325 20,000 28,000 15,000 63,000
Job 327 16,000 34,000 50,000
113,000 Finished Good

4. The gross earnings of factory workers for Amcar Company during th


Php400,000. The employer's payroll taxes for the factory payroll are P
State amount and accumulated cost of factory labor, 75% is related to direct labor and 25
indirect labor.
Instructions
(a) Prepare the entry to record the factory labor costs for the
(b) Prepare the entry to assign factory labor to production.
(c) Prepare the entry to assign manufacturing overhead to pr
predetermined overhead rate is 125% of direct labor cost.

a. Factory Labor 448,000


Salaries Payable
Tax Payable

b. Work In Process 336,000


Manufacturing overhead 112,000
Factory Labor

c. Work In process 420,000


Manufacturing Overhead
rch with Php17,000 of work in process costs 5. Booster Manufacturing uses a
shows the following additional costs assigned has Work in Process Inventory of
and Job No. 222, Php4,000. Durin
following:

d 327 were completed in May, and Job 326 was


onth after completion. Total revenue for jobs sold

process and finished goods inventory accounts at the end of

work in process

Finished Good

mcar Company during the month of January are


he factory payroll are Php48,000. Of the total
ed to direct labor and 25% is attributable to
ctory labor costs for the month of January.
y labor to production.
acturing overhead to production, assuming the
% of direct labor cost.

400,000
48,000

448,000

336,000*125%
420,000
5. Booster Manufacturing uses a job order cost accounting system. On April 1, the company
has Work in Process Inventory of Php7,600 and two jobs in process: Job No. 221, Php3,600,
and Job No. 222, Php4,000. During April, a summary of source documents reveals the
following:

For Materials Requisition Slips Labor Time Tickets


Job No. 221 Php1,200 Php1,600
222 1,700 2,200
223 2,400 2,900
224 2,600 2,800
General use 600 400
Totals 8,500 9,900

Foster applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job
No. 221 is completed during the month.

Instructions
(a) Prepare summary journal entries to record the raw materials requisitioned, factory labor
the assignment of manufacturing overhead to jobs, and the completion of Job No. 221.

(b) Calculate the balance of the Work in Process Inventory account at April 30.

a. Work in Process Inventory 7,900


Manufacturing Overhead 600
Raw Materials Inventory 8,500

Work in Process Inventory 9,500


Manufacturing Overhead 400
Raw Materials Inventory 9,900

Work in Process Inventory 9,500*60% 5,700


Manufacturing Overhead 5,700

Finished Good Inventory 7,360


Work In Process Inventory (3,600+1,200+1,600+960) 7,360
b. Work In Process
7,600 7,360
7,900
9,500
5,700
23,340
direct labor cost. Job

s requisitioned, factory labor used,


mpletion of Job No. 221.

ount at April 30.


(

You might also like