Cost Accounting and Control, de Leon 2019

Chapter 5 Job Order Costing Problem 2 - Golden Shower Company

JOURNAL ENTRIES

a. Materials 229,040
Accounts payable 229,040

Computations:
Material X 20,000 u x P5.20 104,000
Material Y 24,000 u x P3.75 90,000
Indirect materials 35,040
229,040

b. Payroll 220,000
Withholding taxes payable 31,000
SSS premiums payable 7,000
Philhealth contributions payable 440
Pag-ibig fund contributions payable 6,600
Accrued payroll 174,960

Accrued payroll 174,960

Cash 174,960

c. Work in process 156,000

FO control 24,000
Mktg. & adm. expense control 40,000
Payroll 220,000

Computations: (refer to job order cost sheet)

Job 101 10,000 DL x P4 = 40,000
Job 102 16,000 DL x P5 = 80,000
Job 103 12,000 DL x P3 = 36,000
Total DL 156,000
Indirect labor 24,000
Mktg. & adm 40,000
220,000

d. Work in process 216,350

FO control 15,040
Materials 231,390

Computations:
Material X 113,600
Material Y 102,750 216,350
Indirect materials 15,040
231,390

e. Work in process 85,500

FO Applied 85,500

Computations: (refer to job order cost sheet)

Job 101 10,000 DL x P2.25 = 22,500
Job 102 16,000 DL x P2.25 = 36,000
Job 103 12,000 DL x P2.25 = 27,000
85,500

f. Accounts receivable
Sales 510,000
510,000

Cost of goods sold ations: (refer to job order cost sheet)

Work in process Comput
Cost Accounting and Control, de Leon 2019
Chapter 5 Job Order Costing Problem 2 - Golden Shower Company

380,700 380,700
Job 101 176,700
Job 102 204,000
380,700

g. Cash 494,000
Sales discount 26,000
Accounts receivable 520,000

Computations:
Accounts receivable: 494,000 / 95% = 520,000
Sales discount: 520,000 x 5% = 26,000

h. Mktg. & adm. expense control 30,000

FO control 25,600
Cash 51,600
Accumulated depreciation 4,000

i. Accounts payable 170,000

Cash 170,000

j. FO applied 85,500
Cost of goods sold 6,100
FO control 79,400

Computations: (over)under applied factory overhead

JE (c) 24,000
14,760
JE (d) 15,040
JE (h) 25,600
Total FO control 79,400
JE (e) FO applied (85,500)
Over-applied FO (6,100)
 STOCK CARDS

Received Issued Balance

Material X
Beg. 4,000 u @ P5.00 20,000 4,000 u @ P5.00 20,000
(a) 20,000 u @ P5.20 104,000 20,000 u @ P5.20 104,000
24,000 u 124,000
Job 101 4,000 u @ P5.00 20,000 20,000 u @ P5.20 104,000
16,000 u @ P5.20 83,200 4,000 u @ P5.20 20,800
103,200
Job 103 2,000 u @ P5.20 10,400 2,000 u @ P5.20 10,400

Material Y
Beg. 8,000 u @ P3.00 24,000 8,000 u @ P3.00 24,000
(a) 24,000 u @ P3.75 90,000 24,000 u @ P3.75 90,000
32,000 u 114,000
Job 102 8,000 u @ P3.00 20,000 24,000 u @ P3.75 90,000
16,000 u @ P3.75 60,000 8,000 u @ P3.75 30,000
84,000
Job 103 5,000 u @ P3.75 18,750 3,000 u @ P3.75 11,250

Indirect materials
(a) 35,040
(c) 24,000 11,040

Materials, Dec. 31 32,690

JOB ORDER COST SHEETS

Direct materials Direct labor Factory overhead Total

Job 101
(beg.) 1,000 u x 5.00 5,000 (beg.) 1,000 hrs x 4.00 4,000 (beg.) 1,000 hrs x 2.00 2,000
(Mat X) 4,000 x 5.00 20,000 10,000 hrs x 4.00 40,000 10,000 hrs x 2.25 22,500
16,000 x 5.20 83,200
108,200 44,000 24,500 176,700

Job 102
(beg.) 400 u x 3.00 1,200 (beg.) 400 hrs x 5.00 2,000 (beg.) 400 hrs x 2.00 800
(Mat Y) 8,000 u x 3.00 24,000 16,000 hrs x 5.00 80,000 16,000 hrs x 2.25 36,000
16,000 u x 3.75 60,000
85,200 82,000 36,800 204,000

Job 103
(Mat X) 2,000 u x 5.20 10,400 12,000 hrs x 3.00 36,000 12,000 hrs x 2.25 27,000
(Mat Y) 5,000 u x 3.75 18,750
29,150 36,000 27,000 92,150
COST OF GOODS SOLD STATEMENT

Direct materials used

Materials, January 1 44,000
Purchases 229,040
Materials available for use 273,040
Less: Materials, December 31 32,690
Indirect materials 24,000 (56,690) 216,350
Direct labor 156,000
Factory overhead 85,500
Total manufacturing costs 457,850
Work in process, January 1 15,000
Cost of goods put into process 472,850
Less: Work in process, December 31 (92,150)
Cost of goods manufactured 380,700
Finished goods, January 1 65,000
Total goods available for sale 445,700
Less: Finished goods, December 31 (65,000)
Cost of goods sold - normal 380,700
Add: Under-applied factory overhead (6,100)
Cost of goods sold - actual 374,600

Computations: (over)under applied factory overhead

JE (c) 24,000
14,760
JE (d) 15,040
JE (h) 25,600
Total FO control 79,400
JE (e) FO applied (85,500)
Over-applied FO (6,100)