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 ~OH-pest JOB – ORDER COSTING

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Long Live Inc is employing normal costing for its job orders. The overhead is applied using a predetermined
overhead rate. The following information relates to the company for the year ended December 31, 2021:

Job No. 101 Job No. 102 Job No. 103

C
Job in Process, Jan 2021
Direct Materials 40,000 30,000 0
Labor 60,000 40,000 0
Factory Overhead 30,000 20,000 0
Cost added during 2021:

↳ Direct Materials
Labor
20,000
100,000
10,000
200,000
100,000
400,000
=

130k
Factory Overhead ? ? ?

Additional Information:

✓C
Actual overhead for the year ended amounted to P350,000.

--
w ✓ Jobs 101 and 102 were completed and transferred to finished goods during the year.
-

✓ Job 101 was sold during the year.

✓ The gross profit rate is 20% based on cost.

What is the total manufacturing cost?

What is the cost of goods manufactured?

What is the gross profit?

20%based
-

on
What is the work in process?

What is the cost of goods sold?

LOGM:700K
F6,b:0

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 -
Electric Touch uses a job order cost system. The following data were obtained from the company’s cost
records as of June 30. No jobs were in process at the beginning of June, all costs listed being incurred
during the month. - Dm+DL+OH
Job Order
- C⑩ Direct
Materials (P)
Direct Labor
Hours
Direct Labor
Cost (P)
TMC
~

⑤O ⑧ 1,950 7,870
⑰
I
101 4,320 1,300 1,600
102 9,150 3,700 7,250 5,550 21,976 w

!
WIP 103 11,275 8,200 14,325
12,300 C
37,900

E i
it
104 3,225 1,500 2,800
2,250
105 6,500 3,200 6,100
106 2,750 980 1,650

✓ Manufacturing overhead costs are charged to jobs based on P1.50 per direct labor hour.
✓ O
The actual manufacturing overhead cost for the month ended P30,350.
✓ During June, Job Order 101, 102, 104, and 105 were completed.
- -

✓
--
Job 101 and 102 were shipped out and the customers were billed P9,000 for Job 101 and P20,000
for Job 102.
TMC: 99,265
-
The cost of goods manufactured would be:

Imphal
r
DM

iMc OH W DL r

COGM

End (25,675)
COSS ⑰0
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 of control
- Applied
I Can See You Corporation has underapplied overhead of P45,000 for the year. Before disposition of
underapplied overhead, selected year-end balances from its accounting records were:

Sales 1,200,000
Cost of Goods Sold 720,000
+797,500:757,588

j
Direct Materials Inventory 36,000
Work in Process Inventory 54,000 w -
-

Finished Goods Inventory 90,000 W

Under its cost accounting system, over or underapplied overhead is assigned to appropriate inventories
and cost of goods sold based on year-end balances. In its year-end income statement, the company should
report a cost of goods sold of
. . .

OH-Control

↑Immaterial
At the end of the last fiscal year, Castles Crumbling had the following account balances:

Overapplied overhead 6,000

Cost of Goods Sold
Work in Process
980,000
38,000
-
6k 974K
=

Finished Goods 82,000

-

-
If the most common treatment of assigning overapplied overhead was used, the final balance in the cost of
goods sold would have been:
-

COGS

·H-
OH-Control ⑯