Account Id Wr Ng
4
job order cost sheet for Aikman Company is shown Job No. 92 For 2,000 units Direct labor Manufacturing Overhead Date, Beg. bal. Jan.1= $4,500, Jan.8= ?, Jan.12=$ Cost of completed job: Unit cost ($45,100 ÷ 2,000) =$22.55 Instructions: a-On the basis of the foregoing data answer the f 1-What was the balance in Work in Progress Invent 2-If manufacturing overhead is applied on the bas b-Prepare summary entries at January 31 to record Solution 1 Direct Material = 5000 Direct Labour = 6000 Mfg Overhead= 4500 WIP as on 1 Jan 15500 2 Last Year Direct Labour = 6000 Mfg Overhead= 4500 Overhead rate as % of Direct Labour 75 This year ( see working ) Direct Labour = 12000 Mfg Overhead= 9600 Overhead rate as % of Direct Labour 80 Working , Direct Labour = 18000-6000=12000 Mfg Overhead=14100-4500=9600 b Journal Entries as on 31 Jan Direct materials Date Beg. bal. Jan.1 =$5,000, Jan.8 =$6,000, Jan. Date, Beg. Bal. Jan. 1 =$6,000, Jan.8= ?, Jan.12= Direct materials=$13,000 Direct labor =$18,000 Manufacturing overhead=$14,100 Total cost =$45,100
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Transcript of Account Id Wr Ng
job order cost sheet for Aikman Company is shown below.Job No. 92 For 2,000 units
Direct labor
Manufacturing OverheadDate, Beg. bal. Jan.1= $4,500, Jan.8= ?, Jan.12=$6,400, Jan.25=?, Jan.27= $3,200, Total =$14,100.
Cost of completed job:
Unit cost ($45,100 ÷ 2,000) =$22.55
Instructions:a-On the basis of the foregoing data answer the following question,1-What was the balance in Work in Progress Inventory on January 1 if this was the only unfinished job?2-If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?b-Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92.
Solution1 Direct Material = 5000
Direct Labour = 6000Mfg Overhead= 4500WIP as on 1 Jan 15500
2 Last YearDirect Labour = 6000Mfg Overhead= 4500Overhead rate as % of Direct Labour= 75 %
This year ( see working )Direct Labour = 12000Mfg Overhead= 9600Overhead rate as % of Direct Labour= 80 %
Working ,Direct Labour = 18000-6000=12000Mfg Overhead=14100-4500=9600
b Journal Entries as on 31 Jan
S.No. Accounts Title & Description Debit Credit1 Finsihed Goods Inventory 15500
Direct materials Date Beg. bal. Jan.1 =$5,000, Jan.8 =$6,000, Jan.12 =?, Jan.25 =$2,000, Jan.27 =?, Total = $13,000.
Date, Beg. Bal. Jan. 1 =$6,000, Jan.8= ?, Jan.12= $8,000, Jan.25= ?, Jan.27=$4,000, Total= $18,000.
Direct materials=$13,000 Direct labor =$18,000 Manufacturing overhead=$14,100 Total cost =$45,100
WIP inventory 15500 ( Transfer of Op. WIP to Finsihed Goods )
2 WIP Inventory 29600 Direct Materials 8000 Direct Labour 12000 Mfg Overheads 9600 ( Transfer of current years cost to WIP )
3 Finsihed Goods Inventory 29600 WIP inventory 29600( Transfer of current year WIP to Finished Goods)
Date, Beg. bal. Jan.1= $4,500, Jan.8= ?, Jan.12=$6,400, Jan.25=?, Jan.27= $3,200, Total =$14,100.
a-On the basis of the foregoing data answer the following question,1-What was the balance in Work in Progress Inventory on January 1 if this was the only unfinished job?2-If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?b-Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92.
Date Beg. bal. Jan.1 =$5,000, Jan.8 =$6,000, Jan.12 =?, Jan.25 =$2,000, Jan.27 =?, Total = $13,000.
Date, Beg. Bal. Jan. 1 =$6,000, Jan.8= ?, Jan.12= $8,000, Jan.25= ?, Jan.27=$4,000, Total= $18,000.
