Section 3: Job costing 40 marks+ Orpheus Ltd manufactures a range of instruments. It is currently...

Transcribed Image Text:

Section 3: Job costing 40 marks+ Orpheus Ltd manufactures a range of instruments. It is currently October and production reports show that the business is working on one job started in September (Job 300) and two jobs started this month (Job 301 and Job 302). The accumulated costs for Job 300 at the beginning of October is $76,200. The following information is available:+ Required materials not in stock were purchased on credit for $85,000. < During the month, the following overhead costs have incurred: < Indirect materials: $4,000 (from stock accounted under raw materials inventory) < Depreciation: $20,000 (80% relates to production machines and the remainder used for selling and administrative functions) Marketing and promotional spend: $4,200 (unpaid till November) < Maintenance cost for production machines: $5,000 (paid on 25 October) < Miscellaneous factory overhead costs: $6,000 (unpaid till November) < The costs of direct materials used and direct labour incurred, and the number of direct labour hours and machine hours for the month are as follows:+ Job number 300 301 302 Direct material costs 150,000+ 280,000+ 350,000 Direct labour costs" 32,000 50,000+ 68,000 Direct labour hours 160 280 320 Machine hours 70+ 90 100 The budgeted manufacturing overhead for the year is $360,000, annual budgeted direct labour hours is 9,600, and annual budgeted machine hours is 3,200. The production process is labour-intensive and an appropriate allocation base that reflects this is used for allocating overhead. + Additional information: At the beginning of October, there is a batch of completed and unsold products from Job 299 that cost $130,000 to manufacture. < There was $55,000 worth of raw materials on hand at the start of the period. Two jobs (Job 300 and Job 301) have been completed during October, and the products produced in Job 299 and Job 300 are sold to customers on credit for a profit of $45,000.+ Required:+ 1. Prepare relevant journal entries for October. (30 marks) < < 2. Prepare the Schedule of Cost of Goods Sold for October. (10 marks) Section 3: Job costing 40 marks+ Orpheus Ltd manufactures a range of instruments. It is currently October and production reports show that the business is working on one job started in September (Job 300) and two jobs started this month (Job 301 and Job 302). The accumulated costs for Job 300 at the beginning of October is $76,200. The following information is available:+ Required materials not in stock were purchased on credit for $85,000. < During the month, the following overhead costs have incurred: < Indirect materials: $4,000 (from stock accounted under raw materials inventory) < Depreciation: $20,000 (80% relates to production machines and the remainder used for selling and administrative functions) Marketing and promotional spend: $4,200 (unpaid till November) < Maintenance cost for production machines: $5,000 (paid on 25 October) < Miscellaneous factory overhead costs: $6,000 (unpaid till November) < The costs of direct materials used and direct labour incurred, and the number of direct labour hours and machine hours for the month are as follows:+ Job number 300 301 302 Direct material costs 150,000+ 280,000+ 350,000 Direct labour costs" 32,000 50,000+ 68,000 Direct labour hours 160 280 320 Machine hours 70+ 90 100 The budgeted manufacturing overhead for the year is $360,000, annual budgeted direct labour hours is 9,600, and annual budgeted machine hours is 3,200. The production process is labour-intensive and an appropriate allocation base that reflects this is used for allocating overhead. + Additional information: At the beginning of October, there is a batch of completed and unsold products from Job 299 that cost $130,000 to manufacture. < There was $55,000 worth of raw materials on hand at the start of the period. Two jobs (Job 300 and Job 301) have been completed during October, and the products produced in Job 299 and Job 300 are sold to customers on credit for a profit of $45,000.+ Required:+ 1. Prepare relevant journal entries for October. (30 marks) < < 2. Prepare the Schedule of Cost of Goods Sold for October. (10 marks)