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Exercises On Job-Order Costing
Exercises On Job-Order Costing
k. Job number G22, consisting of 50 tachometers was finished during April. The
total cost of the job was $1,100.
l. During April 7,000 machine hours were used.
m. Sales on account for April amounted to $176,000. The cost of goods sold in April
was $139,000.
3. The following data refers to Franconia Corporation for the year 2004.
Sales Revenue ……………………………………………………… $2,105,000
Raw-material Inventory, 12/31/03……………………………………. 89,000
Purchase of raw materials in 2004………………………………………..731,000
Raw-material inventory, 12/31/04………………………………………… 59,000
Direct labor cost incurred…………………………………………………..474,000
Selling & Administrative expenses………………………………………269,000
Indirect labor cost incurred………………………………………………...150,000
Property taxes on factory……………………………………………………90,000
Depreciation on factory building…………………………………………..125,000
Income tax expense………………………………………………………… 25,000
Indirect material used………………………………………………………..45,000
Depreciation on factory equipment……………………………………….60, 000
Insurance on factory & equipment………………………………………… 40,000
Utilities for factory………………………………………………………… 70,000
Work-in Process inventory, 13/31/03………………………………………. 0
Work-in Process inventory, 12/31/04……………………………………….40,000
Finished-Goods inventory, 12/31/03………………………………………..35,000
Finished-Goods inventory, 12/31/04………………………………………40,000
Applied manufacturing overhead…………………………………………..577,500
Required:
a. Prepare Franconia’s schedule of cost of goods manufactured.
b. Prepare Franconia’s schedule of cost of goods sold for 2004. The
company closes overapplied or underapplied overhead into cost of goods
sold.
c. Prepare Franconia’s income statement for 2004.
4. Film Specialists Inc., operates a small production studio in which advertising films
are made for TV and other uses. The company uses a job-order costing system to
accumulate costs for each film produced. The company trial balance as of May 1,
the start of its fiscal year, is given as follows:
Cash…………………………………………………$60,000
Accounts Receivable……………………………… 210,000
Materials and Supplies………………………………130, 000
Film in Process……………………………………… 75,000
Finished Films……………………………………… 860,000
Prepaid Insurance…………………………………… 90,000
Studio & Equipment………………………………..5,200,000
Accumulated Depreciation………………………………………1, 990,000
Accounts Payable…………………………………………………..700,000