Problem 1. BJ Manufacturing Company uses Job Order Costing system to accumulate production costs. At the...

  

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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

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