Activity 2-Job Order Costing

1. JYD Manufacturing Company showed the following information as of June 1, 2020;

Raw materials inventory P320, 000
Work in process inventory 400,000
Finished goods inventory 350,000

During the month of June, the following were incurred

Materials purchased P170, 000
Materials used 200,000
Direct labor 400.000
Factory Overhead 210,000
After reviewing the quantities on hand, ending inventories were:
Work in process inventory 280,000
Finished goods inventory 430,000

What is the raw materials inventory as of June 30, 2020?

Raw Materials = P140, 000

Journal Entry
Raw Materials Inventory P290, 000
Accounts Payable P290, 000
To record the raw material inventory

2. .JYD Manufacturing Company showed the following information as of June 1, 2020;

Raw materials inventory P320, 000
Work in process inventory 400,000
Finished goods inventory 350,000

During the month of June, the following were incurred

Materials purchased P170, 000
Materials used 200,000
Direct labor 400.000
Factory Overhead 210,000
After reviewing the quantities on hand, ending inventories were:
Work in process inventory 280,000
Finished goods inventory 430,000

What is the total cost of goods manufactured during the month?

Total COGM = 780, 000
Journal Entry
- P720, 000
- xxx
To record

3. JYD Manufacturing Company showed the following information as of June 1, 2020;

Raw materials inventory P320, 000
Work in process inventory 400,000
Finished goods inventory 350,000

During the month of June, the following were incurred

Materials purchased P170, 000
Materials used 200,000
Direct labor 400.000
Factory Overhead 210,000
After reviewing the quantities on hand, ending inventories were:
 Work in process inventory 280,000
Finished goods inventory 430,000

What is the total cost of goods available for sale?

Journal Entry
- xxx
- xxx
To record

4. JYD Manufacturing Company showed the following information as of June 1, 2020;

Raw materials inventory P320, 000
Work in process inventory 400,000
Finished goods inventory 350,000

During the month of June, the following were incurred

Materials purchased P170, 000
Materials used 200,000
Direct labor 400.000
Factory Overhead 210,000
After reviewing the quantities on hand, ending inventories were:
Work in process inventory 280,000
Finished goods inventory 430,000

How much was the Cost of goods sold?

Journal Entry
- xxx
- xxx
To record

5. Peter Senen Company has the following cost data as of Sept 1, 2020
Materials purchased P170, 000
Materials used 200,000
Direct labor 400,000
Factory overhead 210,000
Office rent 50,000

How much is the total manufacturing costs?

Journal Entry
- xxx
- xxx
To record

6. Peter Senen Company has the following cost data as of Sept 1, 2020
Materials purchased P170, 000
Materials used 200,000
Direct labor 400,000
Factory overhead 210,000
Office rent 50,000

What is the total prime costs?

 Journal Entry
- xxx
- xxx
To record

7. Peter Senen Company has the following cost data as of Sept 1, 2020
Materials purchased P170, 000
Materials used 200,000
Direct labor 400,000
Factory overhead 210,000
Office rent 50,000

What is the total conversion costs?

Journal Entry
- xxx
- xxx
To record

8. Ethel Company provided the following information as of May 31, 2020

Sales P900, 000
Finished goods inventory, May 31 300,000
Work in process inventory, May 31 350,000
Raw materials inventory, May 31 280,000
Finished goods inventory, May 1 200,000
Work in process inventory, May 1 310,000
Raw materials inventory, May 1 250,000
Direct labor 150,000
Factory overhead 110,000
The average historical gross profit is 30% of sales

What is the total manufacturing costs?

Journal Entry
- xxx
- xxx
To record

9. Ethel Company provided the following information as of May 31, 2020

Sales P900, 000
Finished goods inventory, May 31 300,000
Work in process inventory, May 31 350,000
Raw materials inventory, May 31 280,000
Finished goods inventory, May 1 200,000
Work in process inventory, May 1 310,000
Raw materials inventory, May 1 250,000
Direct labor 150,000
Factory overhead 110,000
The average historical gross profit is 30% of sales

How much was the total raw materials used?

Journal Entry
- xxx
 - xxx
To record

10. Ethel Company provided the following information as of May 31, 2020
Sales P900, 000
Finished goods inventory, May 31 300,000
Work in process inventory, May 31 350,000
Raw materials inventory, May 31 280,000
Finished goods inventory, May 1 200,000
Work in process inventory, May 1 310,000
Raw materials inventory, May 1 250,000
Direct labor 150,000
Factory overhead 110,000
The average historical gross profit is 30% of sales

How much was the total raw materials purchased?

Journal Entry
- xxx
- xxx
To record

11. The following data are available for Peter Senen Company during the month of July 2020:
Direct materials purchased P 95,000
Direct labor 80,000
Indirect materials 40,000
Indirect labor 45,000
Other indirect factory costs 60,000
Marketing expenses 72,000
Office salaries and wages 30,000
Raw materials inventory, June 30 35,000
Raw materials inventory, July 31 50,000

What is the total manufacturing costs?

`
Journal Entry
- xxx
- xxx
To record

12. The following data are available for Peter Senen Company during the month of July 2020:
Direct materials purchased P 95,000
Direct labor 80,000
Indirect materials 40,000
Indirect labor 45,000
Other indirect factory costs 60,000
Marketing expenses 72,000
Office salaries and wages 30,000
Raw materials inventory, June 30 35,000
Raw materials inventory, July 31 50,000

What is the total factory overhead?

Journal Entry
- xxx
- xxx
 To record

13. Jane Company uses Job order costing system and applies manufacturing overhead to work in
process using a predetermined annual overhead rate.
During May 2020, Jane’s transactions included the following:
Direct materials issued to production P50, 000
Indirect materials issued to production 4,000
Manufacturing overhead incurred 75,000
Manufacturing overhead applied 80,000
Direct labor costs 60,000
Jane had neither beginning nor ending work in process inventory. What was the cost of jobs
completed in May 2020?

Journal Entry
- xxx
- xxx
To record

14. Krissy Company uses job order cost system. The following transactions were completed in
January, which was the first month of operations:
Received direct materials and supplies costing P20, 000
Materials and supplies were requisitioned as follows:
Direct materials
Job 1 P3, 000
Job 2 4,000
Job 3 1,000 P8, 000
Indirect materials 1,000
Factory payroll was distributed as follows:
Direct labor
Job 1(200 hrs) P2, 000
Job 2(300 hrs) 3,000
Job 3(400 hrs) 4,000 9,000
Indirect labor 2,000
Other indirect manufacturing costs totaled P3, 000
Indirect manufacturing costs are applied on the basis of direct labor hours.
The budget for 2020 included 9,000 direct labor hours and a total overhead budget of P63, 000.

How much factory overhead applied to production?

Journal Entry
- xxx
- xxx
To record

15. Krissy Company uses job order cost system. The following transactions were completed in
January, which was the first month of operations:
Received direct materials and supplies costing P20, 000
Materials and supplies were requisitioned as follows:
Direct materials
Job 1 P3, 000
Job 2 4,000
Job 3 1,000 P8, 000
Indirect materials 1,000
Factory payroll was distributed as follows:
Direct labor
Job 1(200 hrs) P2, 000
Job 2(300 hrs) 3,000
 Job 3(400 hrs) 4,000 9,000
Indirect labor 2,000
Other indirect manufacturing costs totaled P3, 000
Indirect manufacturing costs are applied on the basis of direct labor hours.
The budget for 2020 included 9,000 direct labor hours and a total overhead budget of P63, 000.

What is the balance of materials inventory at the end?

Journal Entry
- xxx
- xxx
To record

16. Krissy Company uses job order cost system. The following transactions were completed in
January, which was the first month of operations:
Received direct materials and supplies costing P20, 000
Materials and supplies were requisitioned as follows:
Direct materials
Job 1 P3, 000
Job 2 4,000
Job 3 1,000 P8, 000
Indirect materials 1,000
Factory payroll was distributed as follows:
Direct labor
Job 1(200 hrs) P2, 000
Job 2(300 hrs) 3,000
Job 3(400 hrs) 4,000 9,000
Indirect labor 2,000
Other indirect manufacturing costs totaled P3, 000
Indirect manufacturing costs are applied on the basis of direct labor hours.
The budget for 2020 included 9,000 direct labor hours and a total overhead budget of P63, 000.

What is the factory overhead under or over applied?

Journal Entry
- xxx
- xxx
To record

17. Combate Company uses a job order cost system and applies factory overhead on the basis of the
direct labor cost. The overhead rates for 2020 are 200% for department A and 50% for Department B.
Job 123, started and completed during 2020 was charged with the following costs:
Department A Department B
Direct materials P25,000 P5,000
Direct labor ? 30,000
Factory overhead 40,000 ?

What is the total manufacturing costs associated with Job 123?

Journal Entry
- xxx
- xxx
To record

Peter Senen company manufactures tools to customer specifications. The following data pertain to
Job 222 for the month of February:
Direct materials used P 4,200
 Direct -labor hours worked 300
Direct -labor rate per hour P8.00
Machine hours used 200
Applied factory overhead rate per hour P15.00

What is the total manufacturing cost recorded on Job 222 for February?

Journal Entry
- xxx
- xxx
To record

18. Grace Company used a predetermined ratew during 2020 of P2 per direct labor hour, based on an
estimate of 20,000 direct labor hour s to be worked during the year. Actual costs and activity during
2020 were:
Actual manufacturing overhead cost incurred P30,000
Actual direct labor hours worked 18,000

What would be the under or overapplied overhead for 2020?

Journal Entry
- xxx
- xxx
To record

19. James Company uses a job order cost sytem. The following debits (credits) appeared in James
account for the month of April 2020:
April Description Amount
1 Balance P4,000
30 Direct Materials 24,000
.30 Direct labor 16,000
.30 Factory overhead 12,800
.30 To finished goods (48,000)

James applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 5,
the only job still in process on April 30, 2020, ahs been charged of direct labor of P2,000. What was
the amount of direct materials charged to Job No.5?

Journal Entry
- xxx
- xxx
To record

20. Ethel Company’s job order system, manufacturing overhead is applied to work in process using a
predetermined annual overhead rate. During January 2020, Ethel’s transactions included the
following:
Direct materials issued to production P 90,000
Indirect materials issued to production 8,000
Manufacturing overhead incurred 125,000
Manufacturing overhead applied 113,000
Direct labor costs 107,000

Ethel had neither beginning nor ending work-in process inventory, What was the cost of jobs
completed in January 2020?

Journal Entry
- xxx
 - xxx
To record

21. Petsey Co. Has considerable excess manufacturing capacity. A special job order’s cost sheet
includes the following applied manufacturing overhead costs:
Fixed costs P21,000
Variable costs 33,000
The fixed costs include a normal P3,700 allocation for in-house design costs, although no in-house
design will be done. Instead, the job will require the use of external designers costing P7,750. What is
the total amount to be included in the calculation to determine the minimum acceptable price for the
job?

Journal Entry
- xxx
- xxx
To record

22. Peter Company provided the following data for the year ended December 31, 2020:
Raw materials purchases P 80,000
Total manufacturing costs 220,000
Decrease in raw materials inventory 4,000
Decrease in work in process inventory 20,000
Increased in finished finished goods inventory45,000
Gross margin ratio 40%
Factory overhead is applied at 60% of direct labor. How much is the factory overhead cost incurred?

Journal Entry
- xxx
- xxx
To record

23. Senen Company provided the following data for the month ended October 31, 2020:
Direct labor (2,000 hours @ P40/hr) P80,000
Inventories, October 1
Raw materials 48,000
Work in process 55,000
Finished goods 81,500
Inventories, October 31
Raw materials 40,000
Work in process 62,000
Finished goods 90,200
Cost of goods sold 204,300
Factory overhead is applied at P36 per direct labor hour. Senen made total purchases of what
amount?

Journal Entry
- xxx
- xxx
To record

24. Kaypee Corporation is a local manufacturer that uses a job order costing. Manufacturing overhead
is applied using a predtermined rate based on direct labor cost. The cost ledger shows the following
information for the month of August.
Work in process Inventory
Debit Credit
Balance, Aug 1 P250,000
Materials used 120,000
 Direct labor 100,000
Applied FOH 80,000
Goods Manufactured P296,000
Kaypee had three outstanding jobs in ending work in process that are expected to be delivered in the
following month:
Job #108 with direct materials of P35,000 and direct labor of P20,000
Job # 109 with direct materials of P45,000 and direct labor of P25,000
Job #110 with applied overhead of P28,000.
What is the total cost of Job #108?

Journal Entry
- xxx
- xxx
To record

25. Kaypee Corporation is a local manufacturer that uses a job order costing. Manufacturing overhead
is applied using a predtermined rate based on direct labor cost. The cost ledger shows the following
information for the month of August.
Work in process Inventory
Debit Credit
Balance, Aug 1 P250, 000
Materials used 120,000
Direct labor 100,000
Applied FOH 80,000
Goods Manufactured P296, 000
Kaypee had three outstanding jobs in ending work in process that are expected to be delivered in the
following month:
Job #108 with direct materials of P35, 000 and direct labor of P20, 000
Job # 109 with direct materials of P45, 000 and direct labor of P25, 000
Job #110 with applied overhead of P28, 000.
What was the total cost of Job # 109?

Journal Entry
- xxx
- xxx
To record

26. Kaypee Corporation is a local manufacturer that uses a job order costing. Manufacturing overhead
is applied using a predtermined rate based on direct labor cost. The cost ledger shows the following
information for the month of August.
Work in process Inventory
Debit Credit
Balance, Aug 1 P250, 000
Materials used 120,000
Direct labor 100,000
Applied FOH 80,000
Goods Manufactured P296, 000
Kaypee had three outstanding jobs in ending work in process that are expected to be delivered in the
following month:
Job #108 with direct materials of P35, 000 and direct labor of P20, 000
Job # 109 with direct materials of P45, 000 and direct labor of P25, 000
Job #110 with applied overhead of P28, 000.
What was the total cost of Job # 110?

Journal Entry
- xxx
- xxx
To record