JOB ORDER COSTING QUESTION NO. 1:
Danish corporation produces special product as to customer specifications and uses the Job Order Cost System. The following data relates to its operations of De cember 2006. (1) Purchased Raw materials on account Rs. 60,000 (2) Raw Material issued to factory Rs. 43,000 of which Rs. 4,000 was used indirectly. (3) Factory Labor used Direct Rs. 65,000 and indirect Rs. 5,500. (4) Factory overhead cost incurred on account Rs. 44,000 (5) Factory overhead applied at 100% of Direct Labor Cost. (6) Jobs were completed to the extent of 80% (7) Goods sold on account Rs. 200,000 (8) Finished Goods inventory on Dec.31, 2006 Rs. 18,400 REQUIRED: Record the above transactions. QUESTION NO. 2:
The following information appears in the work in process inventory account: __________________ ____________________________ ___________________ _________________ _________________ __________________ ___________________ ___________________ ___________ __ Balance OCT. 1 7,200 Transferred to finished Direct material 12,000 Goods inventory account 30,000 Direct labor 9,000 Balance OCT. 31 9,000 Factory overhead 10,800 ----------------39,000
39,000
====== ====== Factory overhead is applied as a percentage of direct labor cost, direct labor charged to goods in process at October 31, is estimated to be Rs. 3,000. 75% of the goods finished during October are sold for Cash Rs. 27,000 and the remaining 25% of finished goods are sold on credit Rs. 9,500 REQUIRED: 1. Factory overhead percentage on direct labor cost. 2. Factory overhead applied and directs material used on goods still in process at October 31. 3. General journal entries to record: 4. Manufacturing costs charged to production during October 5. Transfer of production to finished goods warehouse during October. 6. Cash sales and Credit sales QUESTION NO. 3:
The following information was provided for the month of March. 1. Purchase of direct material during the month amounted to Rs. 59,700 on account. 2. Material requisitions issued by the production department during the month total to Rs. 56,200. 3. Time cost of direct workers worker s show 2000 hours worked on various jobs during the mo nth, for total direct labor cost of Rs.30,000/= 4. Direct workers were paid Rs. 26,300 in March. 5. Actual overheads costs for the month amounted to Rs. 34,900 6. Overhead is applied to jobs at a rate of Rs.18 per direct labor hour. 7. Jobs with total accumulated cost of Rs. 1 16,000 were completed during the month. 8. On March 31, finished goods inventory was valued at Rs.22,000 9. During March finished goods were sold for Rs. 128 ,000 accounts. REQUIRED: Prepare general journal entries
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QUESTION NO. 4: st
HAKEEM & COMPANY reported the following inventories on 1 November, 2011. Raw material inventory………………………………………….. Rs. 45,000 Goods in process inventory…………………………………….. 60,000 Finished goods inventory ………………………………………. 37,000 The following transactions took place during November. 1. Material purchased on account Rs. 150,000 2. Material requisition for production Rs. 90,000 and supplies Rs.20,000 3. Material returned to supplier Rs. 6,000 4. Accrued payroll Rs. 105,000 including payroll for indirect labor Rs. 15,000 5. Sandy manufacturing expenses incurred Rs. 110,000 6. Paid to accounts payable Rs.56,000 7. Collected from accounts receivable Rs.90,000 8. FOH applied at the rate of 110% of direct labor cost. 9. Goods in process inventory November 30, Rs.65,000 10. Finished goods inventory November 30. Rs. 55,000 11. Sales on account Rs. 405,000 REQUIRED: Prepare general journal entries QUESTION NO. 5:
The A.M. Company uses job order costing. At the beginning of June, two jobs were in process: JOB 101
Material………………………………………………………… 3,500 Direct labor……………………………………………………. 10,000 Applied factory overhead……………………………………. 8,000
JOB 102
4,700 5,000 4,000
There was no inventory of finished goods on June 1 , 1. 2. 3. 4.
During June job 103, 104, 105, 106, 107, and 108 were started. Material requisitions for June totaled Rs. 30,000 direct labor cost Rs. 45,000. Factory overhead is applied 80% of direct labor cost. The only job still process at the end of June 30 is No.108 with cost of Rs 4,000 for Material and Rs 7,000 for the direct labor. 5. Job 107, the only finished job on hand at the end of June, has total cost of Rs. 8,600 REQUIRED: 1. Calculate work in process inventory on June 30 (job no. 108) 2. General journal entries to record: Cost of Goods manufactured. Cost of goods sold. Closing of over or under applied factory overhead.
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QUESTION NO. 6:
Raza Corporation produces special products to customer’s specifications and uses job order cost system. The following transactions relates to its operations for the month o f December 2012 1. Purchase of Raw Material on Account Rs. 50,000 2. Material issued to production Rs. 66,000 out of which Rs. 6,000 was used indirectly. 3. Labor used direct Rs. 1, 00,000 indirect Rs.10,000 4. Factory overhead cost increased Rs. 80,000 5. Factory overhead applied 100% of direct labor cost. 6. Jobs were completed to the extent of 95%. 7. Goods sold on account Rs.172,500, including G.S.T @ 15% 8. Finished goods inventory valued at Rs. 15,000
REQUIRED: Pass necessary journal entries and close t he factory overhead account. QUESTION NO. 7:
The following data relate to Irfan Manufacturing company for its operation for the year ended Dec.31, 20 08. 1. Raw materials purchased on account Rs.2, 00 ,000 2. Materials issued to factory: Direct 140,000 Indirect 20,000 3. Labor used: Direct labor for production 240,000 For general use; 24,000 4. Other FOH incurred on account Rs. 180,000 5. 90% of the FOH have been applied on the work in process account on the basis of direct labor cost. 6. Good value Rs.516, 000 were transferred from factory to Godown as complete. 7. Finished goods costing Rs. 66,000 were in the ending inventory and the rest we re sold at 20% above cost. REQUIRED: Pass necessary journal entries QUESTION NO. 8
Master sons uses job order cost system factory overhead is charged to individual jobs through the use of predetermined overhead rate-bases on direct labor cost. The following appears in the company goods in process account for the month of January 2009. DEBIT TO ACCOUNT: Balance Jan. 01, 2009 Rs. 10,300 Raw materials 15,000 Direct labor 9,000 FOH 11,700 CREDIT TO ACCOUNT: Transferred to finished goods accounts Rs. 34,000 Balance January 31, 2006 12,000 REQUIRED: 1. Determine the overhead application rate used by the company. 2. Assuming that the direct labor charged to the job still in process at Jan. 31, amounts to Rs.3,000 . Compute the amount of FOH and amount of Raw Material which have been charged to t hese jobs as of Jan. 31, 2006. 3. Prepare general journal entries to record the above transaction.
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