Cost accounting

Week 5. Job order cost accounting.

Practice No. 5
Dr. Teófilo Lauracio Ticona
Practice No. 5 (1 of 3)
501 SAC was established on 2.01. 2020 with a capital of S/ 1,200,000, paid in Cita Cte.
4 Jan. Purchase in cash a factory that consists of a manufacturing plant S/ 300,000; offices
S/ 80,000; machinery and equipment S/ 350,000; transport units S/95,000; furniture and
belongings S/ 35,000; computer equipment S/ 20,000; trademarks and patents S/ 60,000, all
including VAT.
5 Jan. Receives O/T 01 and 02 from Distribuidores SAC to manufacture 60 cereal mills and
120 water pumps.
6 Jan. Prepare the production budget for both orders. O/T 01, for each unit: raw materials
S/ 963, auxiliary materials S/ 115, containers and packaging S/ 94, technician 3.5 HT
(working hours), operator 8 TH and factory expenses S/30 per HT; O/T 02, for each unit:
raw materials S/ 1560, auxiliary materials S/ 615, containers and packaging S/ 60,
technician 8 HT, operator 14 HT and factory expenses S/30 per HT. The technician's salary
is S/ 90 and the operator's salary is S/ 60, HM cost S/ 75.

Practice No. 5 (2 of 3)
7 Jan. The total price of S/120,000 for O/T 01 and S/450,000 for O/T 02 is agreed with the
client. An advance payment of 50% is received, deposited in Account. Cte.
8 Jan. Purchase raw materials S/ 250,000, auxiliary materials S/ 81,000, containers and
packaging S/ 13,000, lubricants and spare parts for machines and equipment S/ 22,500, all
+ VAT, 50% credit, which enter the warehouse.
Jan 10 Hire 6 technicians and 12 operators, at the budgeted wages; also a manager, a
factory supervisor, an accountant and an administrator, whose monthly salaries will be
S/2500, 2000, 2000 and 1500 respectively. They all have family members and joined ONP.
Jan 13 Materials are dispatched from the warehouse for the manufacture of O/T 01
according to the budget, and workers and employees are also allowed to work. Spare parts
and lubricants are shipped to the factory for S/19,500.

Practice No. 5 (3 of 3)
18 Jan. The manufacturing of O/T 01 concludes and enters the warehouse.
20 Jan. Materials are dispatched from the warehouse for the manufacture of O/T 02,
according to the budget, and the manufacture of O/T 02 begins.
Jan 22 O/T 01 is delivered to the client and the balance is received.
31 Jan. Salary and salary forms for the month are prepared and paid. They will earn
electricity S/65400+IGV, water S/6580+IGV, in both 90% corresponds to the factory,
telephony S/3540+IGV. O/T 02 is still in progress.