Title | COST Accounting - JOB Order Costing Problem AND Answer |
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Course | Accountancy |
Institution | University of the Philippines System |
Pages | 6 |
File Size | 156.5 KB |
File Type | |
Total Downloads | 214 |
Total Views | 410 |
Download COST Accounting - JOB Order Costing Problem AND Answer PDF
PROBLEM: The Alexis Company had the following inventories on Aug 1 of the current year. Finished goods P25,000 Work in process 18,500 Materials 22,000 The work in process account controls two jobs Job 401 Job 402 Materials P 3,000 P5,600 Labor 2,500 3,000 Factory overhead 2,000 2,400 P 7,500 P11,000 The following information pertains to August operations: Materials purchased on account. P28,000. Materials issued for production. P25,000. Of this amount, P3,000 was for indirect materials: die difference was distributed: P5,500 to Job 401; P7,000 to Job 402: and P9,500 to Job 403. Materials returned to the warehouse from the factory , P800, of which P300 was for indirect materials, the balance from Job 403. Materials returned to vendors. P1,000 Payroll after deducting P3,025 for withholding taxes. P1,600 for SSS Premiums, P375 for Medicare, and P 1,200 for Pag-ibig, was P22,800. The payroll due the employees was paid during the month. The payroll was distributed as follows: P10,400 to Job 401; P12,500 to Job 402, P10,500 to Job 403 and the balance represents indirect labor. The share of the employer for payroll was recorded - P2,000 for SSS Premiums, P375 for Medicare Contributions, and P1,200 for Pag-ibig Funds. Factory' overhead, other than any previously mentioned, amounted to P15,000. Included in this figure were P3,000 for depreciation of factory building and equipment, and P 950 for expired insurance on the factory. The remaining overhead was unpaid at the end of August. Factory overhead was applied to production at the rate of 80% of direct labor cost. Jobs 401 and 402 were completed and transferred to the finished goods warehouse Job 401 was shipped and billed at a gross profit of 40% of the cost. Cash collections from accounts receivable during August were P35,000.
Requirements for Problem l 1. Journal entries to record the above transactions.
Account Title 1. Materials
Debit 28,000
Accounts Payable 2. Work in Process Factory Overhead Control Materials 3. Materials
Credit 28,000
22,000 3,000 25,000 800
Work in process Factory Overhead Control
500 300
4. Accounts Payable Materials
1,000
5. Factory Payroll Withholding Tax Payable SSS Premiums Payable Medicare Contributions Payable Pag-ibig Funds Payable Accrued Salaries Payable
39,000
6. Work in Process Factory Overhead Control Factory Payroll
33,400 5,600
7. Factory Overhead Control SSS Premiums Payable Medicare Contributions Payable Pag-ibig Funds Payable
3,575
8. Factory Overhead Control Accumulated Depreciation- Ftry. Bldg and Equipment Prepaid Insurance Accounts Payable
15,000
9. Work in Process Applied Factory Overhead
26,720
1,000
3,025 1,600 375 1,200 32,800
39,000
2,000 375 1,200
3,000 950 11,050
26,720
10. Finished Goods Work in process 11. Accounts Receivable Sales
72,220 72,220 44,408 44,408
Cost of Goods Sold Finished Goods
31,720 31,720
12. Cash
35,000 Accounts Receivable
35,000
2. Job order cost sheets
08/01 2
Materials P 3,000 5,500 8,500
08/01 2
Materials P 5,600 7,000 12,600
2 3
Materials P 9,500 (500) 9,000
08/01 6
08/01 6
6
JOB 401 Labor P 2,500 10,400 12,900
JOB 402 Labor P 3,000 12,500 15,500
JOB 403 Labor P 10,500 10,500
08/01 9
Overhead P 2,000 8,320 10,320
08/01 9
Overhead P 2,400 10,000 12,400
9
Overhead P 8,400 8,400
3. Cost of goods sold statement.
Alexis Company Cost of Goods Sold Statement For the Month Ended August 31 Direct Materials Materials Inventory, August 1 P Add: Purchases Less: Purchase Returns Total Materials for Used Less: Materials Inventory, August 31 Indirect Materials Direct Labor Factory Overhead Control Total Manufacturing Costs Add: Work in Process, August 1 Cost of Goods Put into Process Less: Work in Process, August 31 Cost of Goods Manufactured Add: Finished Goods, August 1 Total Goods Available for Sale Less: Finished Goods, August 31 Cost of Goods Manufactured and Sold Add: Under-applied Factory Overhead Cost of Goods Sold- actual
22,000 28,000 1,000 49,000 24,800 2,700
P 21,500 33,400 26,720 81,620 18,500 100,120 27,900 72,220 25,000 97,220 65,500 31,720 155 P 31,875
Activity 2 J.A.N., Inc manufactures tools to customer specification. The following data pertain to Job 309 for February, 2012: Direct materials used P4,300 Direct labor hours worked 300 Direct labor rate per hour P8.00 Machine hours used 200 Applied factory' overhead rate/mach. hr. P15.00 Requirements: 1. Compute for the total manufacturing costs of job 309. Materials Labor (300 x P8) Overhead (200 x P15) Total Manufacturing Cost
P
4,300 2,400 3,000 P 9,700
P
4,300 2,400 P 6,700
2. Compute for the total prime cost. Materials Labor (300 x P8) Prime Cost
3. Compute for the total conversion cost.
Labor (300 x P8) Overhead (200 x P15) Total Conversion Cost
P
2,400 3,000 5,400...