Problem 1. BJ Manufacturing Company uses Job Order Costing system to accumulate production costs. At the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 1. BJ Manufacturing Company uses Job Order Costing system to accumulate production costs. At the beginning of the year, the balances of the inventory accounts are as follows: Raw Materials Inventory Work in Process Inventory Job 101.. Job 102 Finished Goods Inventory Job 005 Job 006 Job 101 Job 102 Indirect P105,000 105,000 P180,000 P125,000 balance P 85,000 97,000 P168,000 210,000 The summaries of transactions for the year are as follows: (a) Raw Materials costing P826,000 were purchased on account. (b) Materials issued to production, P785,000 distributed as follows: Job 103 P150,000 Job 104 Job 105 182,000 P205,000 P95,000 (c) Heat, light and power, factory plant, for the year was P116,000. (d) Depreciation for factory plant for the year, P190,000 (e) Marketing and administrative expenses, P250,000 (1) Production wages for the year was P1,250,000 of which 20% is for indirect laborers The direct wages were distributed as: Job 101, 15%; Job 102, 20% ; Job 103, 25%, Job 104, 30%; Job 105, 10%; (g) Employers' share for SSS, Medicare and Pag-ibig were based on the latest contributions mandated by law. (h) 80% of direct labor cost was applied as overhead to the jobs. () Advertising costs for the year was P56,000 (1) Expired insurance was P50,000 of which, 80% is for the factory. (k) The finished goods stock at the beginning of the year were sold on account at cost plus 40% mark up (1)Miscellaneous factory overhead costs incurred were P500,000. Module 3-Job Order C (m) Job 105 was unfinished at the end of the year. Jobs 103 and 104 were delivered to the customer at cost plus 40% mark up on cost. Required: (1) Prepare T accounts for the following: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Manufacturing Overhead, Cost of goods sold and Sales. Enter the beginning balances. (2) (3) Enter the transactions for the year directly to the T-Accounts Prepare job cost sheets for the jobs in process (4) Determine the balances of the three inventory accounts at the end of the year (5) Prepare a Statement of Costs of Goods Manufactured derdenete with its job order.co Problem 1. BJ Manufacturing Company uses Job Order Costing system to accumulate production costs. At the beginning of the year, the balances of the inventory accounts are as follows: Raw Materials Inventory Work in Process Inventory Job 101.. Job 102 Finished Goods Inventory Job 005 Job 006 Job 101 Job 102 Indirect P105,000 105,000 P180,000 P125,000 balance P 85,000 97,000 P168,000 210,000 The summaries of transactions for the year are as follows: (a) Raw Materials costing P826,000 were purchased on account. (b) Materials issued to production, P785,000 distributed as follows: Job 103 P150,000 Job 104 Job 105 182,000 P205,000 P95,000 (c) Heat, light and power, factory plant, for the year was P116,000. (d) Depreciation for factory plant for the year, P190,000 (e) Marketing and administrative expenses, P250,000 (1) Production wages for the year was P1,250,000 of which 20% is for indirect laborers The direct wages were distributed as: Job 101, 15%; Job 102, 20% ; Job 103, 25%, Job 104, 30%; Job 105, 10%; (g) Employers' share for SSS, Medicare and Pag-ibig were based on the latest contributions mandated by law. (h) 80% of direct labor cost was applied as overhead to the jobs. () Advertising costs for the year was P56,000 (1) Expired insurance was P50,000 of which, 80% is for the factory. (k) The finished goods stock at the beginning of the year were sold on account at cost plus 40% mark up (1)Miscellaneous factory overhead costs incurred were P500,000. Module 3-Job Order C (m) Job 105 was unfinished at the end of the year. Jobs 103 and 104 were delivered to the customer at cost plus 40% mark up on cost. Required: (1) Prepare T accounts for the following: Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Manufacturing Overhead, Cost of goods sold and Sales. Enter the beginning balances. (2) (3) Enter the transactions for the year directly to the T-Accounts Prepare job cost sheets for the jobs in process (4) Determine the balances of the three inventory accounts at the end of the year (5) Prepare a Statement of Costs of Goods Manufactured derdenete with its job order.co
Expert Answer:
Answer rating: 100% (QA)
Here are the Taccounts and job cost sheets with stepbystep calculations for the problem Raw Materials Inventory Beginning Balance P168000 Purchase 826000 Issuance to Production 785000 Ending Balance P... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
At the beginning of last year Thomas purchased 200 shares of the Web.com Fund at an NAV of $26.00 and automatically reinvested all distributions. As a result of reinvesting, Thomas ended the year...
-
At the beginning of the year (January 1), Buffalo Drilling has $ 11,000 of common stock outstanding and retained earnings of $ 8,200. During the year, Buffalo reports net income of $ 8,500 and pays...
-
At the beginning of the year (January 1), Buffalo Drilling has $12,000 of common stock outstanding and retained earnings of $6,800. During the year, Buffalo reports net income of $7,100 and pays...
-
In this study researchers found a correlation between the cleanliness of the homes children are raised in and the years of schooling completed and earning potential for those children What...
-
The manager of the Ewing and Barnes Department Store has four employees available to assign to three departments in the storelamps, sporting goods, and linens. The manager wants each of these...
-
Here is a list of words or phrases related to computerized accounting systems. 1. Entry-level software. 2. Enterprise resource planning systems. 3. Network-compatible. 4. Audit trail. 5. Internal...
-
Plot the curve obtained in the preceding exercise and the one obtained in Exercise 11.26 on one diagram and compare the fit of these two curves. Data From Exercise 11.26 11.26 The following data...
-
4. (Chapter 3) Skycell, a major European cell phone manufacturer, is making production plans for the coming year. Skycell has worked with its customers (the service providers) to come up with...
-
A laser emits a pulse of light which travels at a speed of c (in vacuum) relative to the laser. Does this mean that the speed of the laser relative to the light pulse is also c? Explain your...
-
Suppose that a firm in a perfectly competitive market has the following revenue and cost functions: R(q) = pq and C(q) = 75+ 0.07q+0.04q. Since this firm can sell any quantity of production at a...
-
14% of a subdivision property is for roads, 20% for a park, 23% for commercial usage and the remaining 38.7 hectares is for building lots. Determine: a)the total subdivision area, b)the road area. a)...
-
Why is it important that companies like Enterprise Holdings train, empower, and reward their CSRs (Customer Service Representatives)? . Do you work? If you do, how would you like to be empowered at...
-
Assume you own your own pizzeria business and assume your business is growing at a nice rate. You are convinced that your business is capable of growing at a much faster rate if only you had the...
-
Team 4: Your patient is an 80-year-old male with a history of familial colorectal cancer who reports blood in his stool. What condition(s) might you suspect? What are the risk factors for this...
-
What is etiquette, or protocols and norms for communication on the Internet, called?
-
In case there is a client and you have to conduct therapy. How do the following be applied in the therapy? Are there any possible tools and techniques that can be used? Psychoanalytic therapy...
-
Calculate the average daily balance, finance charge, and Total Owed on the statement below. Make note of the 30-day billing cycle and the 3% finance charge on the average daily balance. This means...
-
The Home Depot is the leading retailer in the home improvement industry and one of the 10largest retailers in the United States. The company included the following on its January 29, 2012, balance...
-
Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided...
-
Newton Company manufactures and sells one product. The company assembled the following projections for its first year of operations: Variable costs per unit: Manufacturing: Direct materials . . . . ....
-
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,200, and the variable cost per cup of coffee served is $0.18....
-
If the sample standard deviations instead of the sample ranges are used to estimate \(\sigma\), the control limits for the resulting \(\bar{x}\) chart are given by \(\overline{\bar{x}} \pm A_{1}...
-
In order to establish control charts for an extraction job, 30 samples of five measurements of the extracted ores are taken, and the results are \(\overline{\bar{x}}=25.96\) tons and \(\bar{s}=1.5\)...
-
Suppose that with the samples of Exercise 15.6, it is desired to establish control also over the variability of the process. Using the method of Exercise 15.5 and the values of \(\overline{\bar{x}}\)...
Study smarter with the SolutionInn App