Problem 12-13A (Algo) Job-order costing system LO 12-2Baird Manufacturing Corporation was started with the issuance of common stock for $65,000. It purchased $7,100 of raw materials andworked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.)Job 1Job 2Job 3TotalDirect RawMaterials Used$ 1,1001,8003,200$ 6,100Direct Labor$ 2,1003,9002,000$ 8,000Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed duringthe period and Job 3 was sold for $10,800 cash. Baird paid $600 for selling and administrative expenses. Actual factory overhead was$6,000.Requireda. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that theamount is insignificant.d-1. Prepare a schedule of cost of goods manufactured and sold for Year 1.d-2. Prepare an income statement for Year 1.d-3. Prepare a balance sheet for Year 1.

Job costing is a method of costing where in all the costs like direct materials, direct labor and…

Baird Manufacturing Corporation was started with the issuance of common stock for $65,000. It purchased $7,100 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used $ 1,100 1,800 3,200 $ 6,100 Direct Labor $ 2,100 3,900 2,000 $ 8,000

Baird Manufacturing Corporation was started with the issuance of common stock for $65,000. It purchased $7,100 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used $ 1,100 1,800 3,200 $ 6,100 Direct Labor $ 2,100 3,900 2,000 $ 8,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 10: Job Order Costing-Journal Entrics The Ultra Manufacturing Co. charges factory overhead to production based on labor hours. Estimated factory overhead for 19H amount to P150,000 (including fixed overhead of P60,000) based on 20,000 labor hours. Work in process as of the beginning of 19H consisted of two jobs with prime costs and labor hours given below. Factory overhead rate in 19G was P7 per labor hour. Job Order No. 28 29 30 31 32 Work in process, Jan. 1: Direct materials Direct labor Labor hours P8,350 2,890 170 P6,725 2,120 130 Prime costs and labor hours in 19H: Direct materials Direct labor Labor hours P97,000 P79,000 50,500 62,000 3,900 5,500 In 19H, total debit to the factory overhead control account amounted to P151,000. P88,000 55,000 4,100 P92,500 57,000 4,300 P59,000 34,200 2,400 Jobs 28, 29 and 30 were completed in 19H. Jobs 28 and 29 were sold at 60% above cost. Required: a. Simple cost sheets b. Journal entries for 19H using Applied Factory Overhead account…
Question 3 Teratoor Space provides interior design services in Bandar Teemor. It uses a job order costing system to accept orders from the customers. The manufacturing overhead cost is absorbed based on direct labour hour. The budgeted manufacturing overhead cost for the month of January is RM96,500. Management expects a total of 19,300 direct labour hours will be used. Prepare journal entries for the month of January: Jan Particular 13 19 22 26 30 Purchase 200 boxes of direct material from Bharatt on credit for RM4,200. 55 boxes of direct material was requested from the store for production. It was bought for RM11.50 per box. The decoration section has purchased 240 boxes indirect material which cost RM26.10 per box from Otara by cash. Direct labour cost paid for the month of January amounted to RM5,900. The depreciation cost of delivery van for the month of January is RM770. For the month of January, a total of 6,300 direct labour hours have been utilised.
Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. Balance Sheet Income Statement Assets Equity Raw F. C. Cash + M. + МОН + WIP + Goods Stk. + Ret. Ear. Rev. Exp. = Net Inc. 60,000 + NA + NA + NA NA 60,000 + NA NA NA NA b. Reconcile all subsidiary accounts with their respective control accounts. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.
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-rk 8 Worksheet Kaitlyn, Inc. is a manufacturer who uses a job order costing system. The data below summårizes the operations related to production and sales for January, the first month of operations. Kaitlyn, Inc. allocates factory overhead on a monthly basis based upon total monthly factory overhead costs and direct labor hours. Total direct labor hours for January are 75,000 hours. Purchased the following raw materials: • 6,000 units for Job 1 (@ $10/unit 5,500 units for Job 2 @ $15/unit 12,300 units for Job 3 @ $5/unit Requisitioned materials for production: 5,000 units for Job 1 @ $10/unit 4,000 units for Job 2 @ $15/unit 10,000 unit for Job 3 @ $5/unit Dir • 2,000 hours of direct labor on Job 1 at $15 per hour • 10,000 hours of direct labor on Job 2 at $14 per hour • 8,000 hours of direct labor on Job 3 at $20 per hour labor costs: • Total factory overhead costs for the month: • $70,000 of indirect materials • S115,000 of indirect labor • $97,000 of utilities costs • $18,000 of…
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16:28 Job order costing-activity 2.docx Activity 2-Job Order Costing 1. JYD Manufacturing Company showed the following information as of June 1, 2020; Raw materials inventory Work in process inventory Finished goods inventory P320,000 400,000 350,000 During the month of June, the following were incurred Materials purchased P170,000 200,000 Materials used Direct labor 400.000 Factory Overhead After reviewing the quantities on hand, ending inventories were: Work in process inventory Finished goods inventory 210,000 280,000 430,000 What is the raw materials inventory as of June 30, 2020? 2. .JYD Manufacturing Company showed the following information as of June 1, 2020; Raw materials inventory Work in process inventory Finished goods inventory P320,000 400,000 350,000 During the month of June, the following were incurred Materials purchased P170,000 200,000 400.000 Materials used Direct labor Factory Overhead After reviewing the quantities on hand, ending inventories were: 210,000 Work in…
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