Exaplex Ltd uses job order costing. It started January 2014 with $240,000 of raw materials and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exaplex Ltd uses job order costing. It started January 2014 with $240,000 of raw materials and $300,000 of finished goods. There was no work-in-progress as at 1 January 2014. During that month, $100,000 of raw materials was purchased on credit. In January, the company started work on 3 jobs, Job-1. Job-2 and Job-3. A review of the material requisition forms and time sheets showed that raw materials and labour costs incurred for the 3 jobs are in the ratio of 3:2:1 respectively. Material requisition forms for January 2014 showed that $300,000 of direct materials was issued for production purposes. Time sheets for the month showed that $180,000 of direct labor cost was incurred. Factory overhead is applied at 100% of direct labor cost. Material retumed report for the month showed that $1.000 of direct materials was retumed by Job-1. This job also generated some scrap and waste materials. The scrap materials were sold for $1,100 while the waste materials incurred a disposal cost of $400. Only 60% of scrap and waste materials were anticipated. In addition to the above, a separate set of material requisition forms and time sheets were kept for rework and replacement costs for defective and spoiled units respectively. A review of the documents showed the following: (1) There were 10 defective units found in Job-3. Correction costs amounting to $10,000 for direct materials and $8,000 for direct labor were incurred. Only 3 defective units were anticipated. (2) 5 units were spoilt in Job-2, and sold for $6,000 in total. Total replacement costs amounting to $9,000 for direct materials and $5,600 for direct labor were incurred. No spoilt units were anticipated for Job-2. Required: (a) Prepare the Job Cost Card for the three jobs for January 2014. (b) At the end of January 2014, only Job-1 was incomplete. Prepare the Work-In-Progress and Raw Materials T-accounts of Exaplex Ltd for January 2014. Exaplex Ltd uses job order costing. It started January 2014 with $240,000 of raw materials and $300,000 of finished goods. There was no work-in-progress as at 1 January 2014. During that month, $100,000 of raw materials was purchased on credit. In January, the company started work on 3 jobs, Job-1. Job-2 and Job-3. A review of the material requisition forms and time sheets showed that raw materials and labour costs incurred for the 3 jobs are in the ratio of 3:2:1 respectively. Material requisition forms for January 2014 showed that $300,000 of direct materials was issued for production purposes. Time sheets for the month showed that $180,000 of direct labor cost was incurred. Factory overhead is applied at 100% of direct labor cost. Material retumed report for the month showed that $1.000 of direct materials was retumed by Job-1. This job also generated some scrap and waste materials. The scrap materials were sold for $1,100 while the waste materials incurred a disposal cost of $400. Only 60% of scrap and waste materials were anticipated. In addition to the above, a separate set of material requisition forms and time sheets were kept for rework and replacement costs for defective and spoiled units respectively. A review of the documents showed the following: (1) There were 10 defective units found in Job-3. Correction costs amounting to $10,000 for direct materials and $8,000 for direct labor were incurred. Only 3 defective units were anticipated. (2) 5 units were spoilt in Job-2, and sold for $6,000 in total. Total replacement costs amounting to $9,000 for direct materials and $5,600 for direct labor were incurred. No spoilt units were anticipated for Job-2. Required: (a) Prepare the Job Cost Card for the three jobs for January 2014. (b) At the end of January 2014, only Job-1 was incomplete. Prepare the Work-In-Progress and Raw Materials T-accounts of Exaplex Ltd for January 2014.
Expert Answer:
Answer rating: 100% (QA)
Stepbystep explanation a Job Cost Card for the three jobs for January 2014 Job1 Job2 Job3 Raw 15... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
What is the PV of a eight-period annual annuity of $6,000 if the interest rate per period is 3% and the first payment is made today? a. $41,441.21 b. $27,145.49 c. $12,112.05 d. $43,381.70
-
Sungsam Corporation, a US-based conglomerate, is considering expanding its operations in India. As the group's chief financial officer, you are asked to estimate the firm's weighted average cost of...
-
X CO produces a 16 ounce can of BR at a cost of $1.80 to make and sells for $3.00. 16 ounces of BR can be further refined into 4 small tins of CP. The chrome polish sells for $5.00 per tin. Variable...
-
How would you apply this concepts to call center statistics? There are two numerical ways of describing quantitative variables, namely measures of location, and measures of dispersion. Measures of...
-
A petroleum company was interested in comparing the miles per gallon achieved by four different gasoline blends (A, B, C, and D). Because there can be considerable variability due to differences in...
-
What are the primary sources of decision rights at the top of publicly traded corporations? Discuss the allocation of decision rights at the top of the typical U.S. corporation.
-
Go through the details of the calculation leading to K = 8g() Ig" (@)e3 (e-) for < Ec for > c'
-
A lease agreement between Lennox Leasing Company and Gill Company is described in E21-8. (Round all numbers to the nearest cent.) Refer to the data in E21-8 and do the following for the lessor. (a)...
-
A taxpayer is using a piece of machinery in his business. He used Section 179 to expense the entire machine in Year One of use. He sells the property in Year Three for a gain and is shocked to learn...
-
Cinder Inc. is a Canadian-controlled private corporation based in your province. The company operates a wholesale business. The following information is provided for its year ended May 31, 2020: 1....
-
Match each statement with its corresponding stock issue. ____ Is where a speaker would address the financial costs of a problem ___ Would most likely include statistics about the extent of a problem...
-
The most crucial feature of monopolistic competition is ______.
-
Under perfect price discrimination _________. a) consumer surplus is zero b) consumer surplus is maximized c) consumer surplus is a constant no matter what price is charged d) consumer surplus rises...
-
Price discrimination _______. a) often works to the advantage of the poor b) generally helps rich customers c) is very hard to find in the United States d) is illegal in the United States.
-
Which statement is true about perfect price discrimination? a) It is very common. b) It is illegal. c) The larger the market, the more likely one is to find it. d) None of the above .
-
Perfect price discrimination eliminates __________ of the customers consumer surplus. a) all b) most c) some d) none
-
The marriage of sports and the media is held together by vast amounts of corporate money and the desire of corporate executives to shape political policy. become leaders of sports organizations....
-
Determine the values of the given trigonometric functions directly on a calculator. The angles are approximate. tan 0.8035
-
Refer to the information in Problem and assume the periodic inventory system is used. In Problem Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and...
-
Refer to Samsungs statement of cash flows in Appendix A. What investing activities result in cash outflows for the year ended December 31, 2013? List items and amounts.
-
Refer to the information in Exercise. Assume that Fields uses the FIFO method of process costing. In QS The Fields Company has two manufacturing departments, forming and painting. The company uses...
-
What is overdraft protection? Are all checking account holders automatically enrolled?
-
List the five most common itemized deductions, and describe the limits set on each.
-
Define net asset value. When is the net asset value of a mutual fund calculated?
Study smarter with the SolutionInn App