Scribd
Upload
21 views3 pages

ACTG3001 AssignU2 1221 DD

Uploaded by

maryanecardoso89
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
21 views3 pages

ACTG3001 AssignU2 1221 DD

Uploaded by

maryanecardoso89
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Managerial Accounting ACTG 3003

Assignment 2 – Job Costing


Prepare your assignment using Excel. Points will be deducted from your grade if the guidelines
below are not followed. Post any Excel questions in the Q & A.

 Use text boxes for your explanations (word wrapping).


 Use cell references in all formulas and functions (no numbers).
 Use a formula or function for all calculations, don’t type in the answer.
 Use a formula for transferring data from one sheet to another.
 Use the sum function appropriately. It should be used when adding more than two
consecutive numbers. Example: =sum(C14:C23) It should not be used when subtracting,
multiplying or dividing. Don’t do this: =sum(C14+C16-C15) Instead do this: =C14+C16-
C15
 Format accordingly:
o All values must be accompanied by an appropriate label.
o Numbers should be aligned and formatted properly.
o Ensure that columns are wide enough to display all data in the cell.
o Don't use too much or bright colour.

Question 1 – 8 Points
During 2018, South State Company used $71,000 of direct materials and incurred $37,000 of
direct labour costs. Indirect labour amounted to $2,700 while indirect materials used totaled
$1,600. Other operating costs pertaining to the factory (manufacturing plant) included utilities
of $3,100; maintenance of $4,500; supplies of $1,800; depreciation expense of $7,900; and
property taxes of $2,600. There was no beginning or ending finished goods inventory, but work
in process inventory began the year with a $5,500 balance and ended the year with a $7,500
balance.

Required: Prepare a schedule of cost of goods manufactured for South State Company for the
year ended December 31, 2018.

Question 2 – 10 Points
Paul Enterprises uses a job costing system. Write journal entries to record the following
transactions in Paulson Enterprises' General Journal for the current month, February. You may
choose any date in the month for the journal entries.
a) Purchased raw materials on account, $75,000.
b) Requisitioned $44,500 of direct materials and $7,000 of indirect materials for use in
production.
c) Factory payroll incurred, $90,000; 80% direct labour, 20% indirect labour.
d) Recorded depreciation expense factory equipment $12,000.
e) Recorded other manufacturing overhead of $42,100 (credit accounts payable).
f) Allocated manufacturing overhead costs based on 120% of direct labour cost.
g) Cost of completed production for the current month, $142,000.
h) Cost of finished goods sold, $115,000; selling price, $175,000 (all sales on account).
Managerial Accounting ACTG 3003
Assignment 2 – Job Costing
Question 3 – 12 Points
Part 1
Copy and paste the job cost sheet template below, to an Excel spreadsheet. Use the following
data pertaining to GH Ltd.’s guitar manufacturing during the month of October, 2018 to
complete the job cost sheet. GH Ltd accepted an order on October 1 to manufacture eight
guitars for Billy Mick’s upcoming European tour on October 9, 2018. Costs relating to materials
and labour for the eight guitars are as follows:
Materials Requisition # Amount
Wood DM – 105 $500
Strings DM – 106 $300
Tuners DM – 107 $200
Bridges DM – 108 $150
Pick Ups DM – 109 $150

Labour: DL type Timesheet # Hours Rate


Craftsmen DL - 100 80 hours $30 per hour
Assembly DL - 101 15 hours $20 per hour

Manufacturing Overhead: GH Ltd allocated overhead using direct labour hours as the allocation
base. Total direct labour hours for 2018 are estimated to be 1200 hours, and total overhead
$87,000.

JOB COST SHEET


Number Date initiated
Date Completed
Departme
Units Completed
nt
Descriptio
n

Direct Materials Direct Labour Overhead


Time- Hour DL Rat
Req. No. Amount Amount Amount
sheet s hours e

Cost Summary Job Completion Status


Progress to
Direct Materials Date
date
Direct Labour
Overhead
Total Cost
Managerial Accounting ACTG 3003
Assignment 2 – Job Costing
Unit Cost per guitar

Part 2
1. If actual overhead for 2018 was $81,000 and applies overhead was 87,000, write the journal
entry to adjust the overhead account at the end of the year. What impact will this adjustment
have on the Income Statement?
2. If GH Ltd sets the price for guitars at 150% of total manufacturing cost, what will the eight guitar
custom order price be for Billy Mick?

You might also like