L1- Assignment- JOB Order Costing PDF

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1.) Items a.

b.

c.

d.

e.

f.

g.

L1- ASSIGNMENT- JOB ORDER COSTING ADJUSTING ENTRIES Particulars Raw Materials Inventory Accounts Payable To record purchase of raw materials on account Work in Process Inventory (JP-204) Work in Process Inventory (JP-205) Work in Process Inventory (JP-206) Manufacturing Overhead Raw Materials Inventory To record the issuance of direct and indirect materials requisitioned for the specific jobs Work in Process Inventory (JP-203) Work in Process Inventory (JP-204) Work in Process Inventory (JP-205) Work in Process Inventory (JP-206) Manufacturing Overhead Accrued payroll To record direct and indirect labor payroll for production Accrued payroll Cash To record payment of payroll of employees Work in Process Inventory (JP-203) Work in Process Inventory (JP-204) Work in Process Inventory (JP-205) Work in Process Inventory (JP-206) Manufacturing Overhead To apply overhead to specific jobs Finished Goods Inventory (JP-203) Work in Process Inventory (JP203) To record completion of job JP-203 Finished Goods Inventory (JP-204) Work in Process Inventory (JP204) To record completion of job JP-204 Accounts Receivable Sales To record sale of JP-201

DEBIT 320,000

320,000 60,000 10,000 64,000 106,000 240,000

83,500 167,000 292,250 250,500 41,750 835,000 835,000 835,000 125,250 250,500 438,375 375,750 1,189,875 852,750 852,750 865,500 865,500 606,000 606,000

Cost of Goods Sold Finished Goods Inventory (JP201) To record cost of goods sold for JP-201

404,000

Accounts Receivable Sales To record sale of JP-202

468,000

Cost of Goods Sold Finished Goods Inventory (JP202) To record cost of goods sold for JP-202

312,000

Accounts Receivable

CREDIT

404,000

468,000

312,000

1,298,900

Sales To record sale of JP-204

1,298,900

Cost of Goods Sold Finished Goods Inventory (JP204) To record cost of goods sold for JP-204 2.)

e.

865,500 865,500

Materials Inventory Control 12/31/2019 Purchases Balance

60,000 380,000 80,000

360,000

Wages Payable Control c. Payment

Work in Process Inventory Control Beginning c. g. i. Ending

12,000 360,000 160,000

720,000

d.

240,000 52,000

Finished Goods Inventory Control 12/31/2019 80,000 740,000 CGS d. 720,000 Ending 60,000

200,000

20,000 Beginning 208,000 h. 12,000 1/31/2020

Manufacturing Overhead Control Charge s

228,000

240,000

i.

Manufacturing Overhead Control Charge s

228,000

240,000

Cost of Goods Sold 740,000

Required: a. Material purchased during January 60,000 + Purchases - 80,000 = 360,000 Purchases = 360,000 - 60,000 +80,000 Purchases = 380,000 b. Cost of Goods Sold during January Cost of Goods Sold = 80,000 +720,000 - 60,000 Cost of Goods Sold = 380,000 c. Direct Manufacturing Labor Costs incurred during January Direct Labor cost per hour = 8,000/125 = 64 DLH Total Direct Manufacturing Labor Costs = 2,500 x 64 DLH Total Direct Manufacturing Labor Costs = 160,000 d. Manufacturing Overhead Allocated during January Overhead rate = 2,400,000/1,600,000 Overhead rate = 150% DL Cost Manufacturing Overhead allocated = 160,000 x 150% Manufacturing Overhead allocated = 240,000 e. Balance, Wages Payable Control, December 31, 2019 Beginning wages payable control + 200,000 - 208,000 = 12,000 Beginning wages payable control = 12,000 - 200,000 + 208,000 Beginning wages payable control = 20,000 f. Balance, Work in Process Inventory Control, January 31, 2020 WIP, Ending = 8,000 + (8,000 x 150%) +32,000 WIP, Ending = 52,000 g. Balance, Work in Process Inventory Control, December 31, 2019 WIP, Beginning + 360,000 + 160,000 + 240,000 - 720,000 = 52,000 WIP, Beginning = 52,000 - 360,000 - 160,000 - 240,000 + 720,000 WIP, Beginning = 12,000 h. Balance, Finished Goods Inventory Control, January 31, 2020 Finished Goods Inventory, Ending = 80,000 + 720,000 - 741,000

i.

Finished Goods Inventory, Ending = 60,000 i. Manufacturing Overhead underapplied or overapplied for January Applied Overhead Actual Overhead Overapplied

240,000 228,000 12,000...