Group 3- JOB ORDER COSTING

Exercise 6-6
A. a. Work in process 720,000.00
Raw Materials 300,000.00
Factory Payroll 180,000.00
Overhead 240,000.00

b. Finished goods 672,000.00

Work in Process 672,000.00

c. Spoiled goods 16,000.00

Manufacturing Overhead 32,000.00
Work in Process 48,000.00

d. Accounts Receivable 1,008,000.00

Sales 1,008,000.00

Cost of goods sold 672,000.00

Finished goods inventory 672,000.00

B. a. Work in Process 5,320,000.00

Raw Materials 1,320,000.00
Factory Labor 1,600,000.00
Overhead 2,400,000.00

b. Finished Goods 5,320,000.00

Work in Process 5,320,000.00

c. Manufacturing Overhead 100,000.00

Raw Materials 20,000.00
Factory Payroll 32,000.00
Manufacturing Overhead(applied) 48,000.00

d. Accounts Receivable 8,512,000.00

Sales 8,512,000.00

Cost of goods sold 5,320,000.00

Finished goods inventory 5,320,000.00

Exercise 6-7
A. a. Work in Process 870,000.00
Raw Materials (100*1250) 625,000.00
Factory Payroll (500hrs*500*48/hr) 120,000.00
Overhead (50*5hrs*500) 125,000.00
 b. Finished goods 889,600.00
Work in Process 889,600.00

c. Work in Process 19,600.00

Factory Payroll 9,600.00
Overhead 10,000.00

d. Accounts Receivable 1,245,440.00

Sales 1,245,440.00

Cost of goods sold 889,600.00

Finished Goods inventory 889,600.00

B. a. Work in Process 5,320,000.00

Raw Materials 1,320,000.00
Factory Payroll 1,600,000.00
Overhead 2,400,000.00

b. Spoiled goods 50,000.00

Work in process 50,000.00

c. Finished goods 5,270,000.00

Work in process 5,270,000.00

D. Accounts Receivable 6,324,000.00

Sales 6,324,000.00

Cost of goods sold 5,270,000.00

Finished goods inventory 5,270,000.00

Exercise 6-8
To record the cost of production:
Work in Process (146.25/1000) 146,250.00
Materials (40000*1000units) 40,000.00
Factory Payroll (1.25hrs*P45*1000units) 56,250.00
Factory Overhead (50000*1000units) 50,000.00

To record the completion of the good units:

1000-100 = 900 units
900 units*146.25 = 131625

Finished Goods 131,625.00

Work in Process 131,625.00
 To record the completion of bad units:
Spoiled goods (100*40) 4,000.00
Factory Overhead (100*106.25) 10,625.00
Work in Process 14,625.00

Units Spoiled 100

Multiply by: Production cost per unit 146.25
Total Prduction cost of Spoiled unit 14,625.00
Less: Removable Amount (100*40) 4,000.00
Unrecovered Cost 10,625.00

Exercise 6-9
Production cost per unit Units
Materials 40 1000
Labor 56.25
Overhead 50
Allowable for spoilage -20
144.25

Spoilage -100
Good 900

To record the cost pf production:

Work in Process 144,250.00
Allowance for spoilage 2,000.00
Materials 40,000.00
Factory Payroll 56,250.00
Factory Overhead 50,000.00

To record the completion of the good units:

Finished Goods 129825(900*144.25)
Work in Process 129,825.00

To record the completion of the bad units:

Spoiled goods 4,000.00
Factory Overhead 10,425.00
Work in Process 14,425.00

Units spoiled 100units

Multiply by: Prod cost per unit 144.25
Total prod cost of spoiled unit 14,425.00
Recoverable Amount (100*40) (4,000.00)
Unrecovered Cost 10,425.00
Direct labor 180,000.00
Mulitply by: Overhead rate 133.33%
Overhead 240,000.00

Units of finished goods 1,400.00

Multiply by: Unit cost 480.00
Finished goods 672,000.00

Rejected units 100.00

Multiply by: Unit cost 480.00
Work in Process 48,000.00
Cost of finished goods(100*160) (16,000.00)
Manufacturing Overhead 32,000.00

Finished goods inventory 672,000.00

Multiply by: Mark up 150%
Sales 1,008,000.00

Direct Labor 1,600,000.00

Multiply by: Overhead Rate 150%
Overhead 2,400,000.00

Direct Labor 32,000.00

Multiply by: Overhead Rate 150%
Overhead 48,000.00

Finished goods 5,320,000.00

Multiply by: Mark up 160%
Sales 8,512,000.00
WIP, beg 870,000.00
WIP, recorded 19,600.00
WIP transferred to FG 889,600.00

Direct labor 9,600.00

Overhead 10,000.00
WIP (charged) 19,600.00

Finished goods 889,600.00

Multiply by: Mark up 1.40
Sales 1,245,440.00

Direct Labor 1,600,000.00

Multiply by: Overhead rate 150%
Overhead 2,400,000.00

Bad units 100.00

Multiply by: Estimated units to be sold 500.00
Spoiled goods 50,000.00

WIP, beg 5,320,000.00

Less: Spoiled goods charged to WIP (50,000.00)
WIP transferred to FG 5,270,000.00

Finished goods 5,270,000.00

Multiply by: Mark up 120%
Sales 6,324,000.00
Production Cost
144,250.00

14,425.00
129,825.00