Chapter 19 – Job Order Costing
Problem 19-3A (70 minutes)
Part 1
JOB COST SHEETS
Job No. 136
Job No. 138
Materials…………..
$ 48,000
Materials…………..
$ 19,200
Labor…………..…..
12,000
Labor…………..…..
37,500
Overhead……..…..
24,000
Overhead……..…..
75,000
Job No. 137
Job No. 139
Materials…………..
$ 32,000
Materials…………..
$ 22,400
Labor…………..…..
10,500
Labor…………..…..
39,000
Overhead……..…..
21,000
Overhead……..…..
78,000
Job No. 140
Labor…………..…..
Overhead……..…..
6,000
Chapter 19 – Job Order Costing
Problem 19-3A (Continued)
[continued from prior page]
e. Work in Process Inventory…………………….……………….177,000
Factory Overhead…………………………………………….. 177,000
To apply overhead to jobs
[($12,000 + $37,500 + $39,000) x 200%].
g. Accounts Receivable………………………….………………….525,000
Sales……………………………………………………………….. 525,000
To record sales on account.
i. Work in Process Inventory…………………….……………….27,000
Factory Overhead…………………………………………….. 27,000
To apply overhead to jobs
[($10,500 + $3,000) x 200%].
19-1064
Chapter 19 – Job Order Costing
Problem 19-3A (Continued)
Part 3
GENERAL LEDGER ACCOUNTS
Raw Materials Inventory
(a) 200,000 (b) 147,500
Bal. 52,500
Work in Process Inventory Factory Overhead
Finished Goods Inventory Cost of Goods Sold
(f) 355,100 (g) 215,700 (g) 215,700
Bal. 139,400 Bal. 215,700
Part 4
Reports of Job Costs*
Work in Process Inventory
Job 137…………………..……………… $ 63,500
Job 140…………………..……………… 15,400
Balance………………………………….. $ 78,900
Job 138…………………..……………… 131,700
Balance………………………………….. $215,700
*Individual totals reconcile with account balances in part 3.
19-1065
Chapter 19 – Job Order Costing
Problem 19-4A (35 minutes)
Part 1
a. Predetermined overhead rate
b. Overhead costs charged to jobs
Direct Applied
Job No. Labor Overhead (60%)
201…………………………………………..…………………..$ 604,000 $ 362,400
202…………………………………………..………………….. 563,000 337,800
c. Overapplied or underapplied overhead determination
Part 2
Dec. 31 Cost of Goods Sold……………………………………….……….12,800
Factory Overhead……………………………………….…….. 12,800
To assign underapplied overhead.
19-1066
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
Estimated overhead costs
Estimated direct labor cost
$1,500,000
$2,500,000
$1,500,000
[50 x 2,000 x $25]
Chapter 19 – Job Order Costing
Problem 19-5A (80 minutes)
JOB COST SHEET
Customer’s Name Worldwide Company Job No. 102
Direct Materials Direct Labor Overhead Costs Applied
Date
Requisition
Number Amount
Time
Ticket
Number Amount Date Rate Amount
#35 33,750 #1-10 90,000 May — 80% 72,000
#36 12,960
SUMMARY OF COSTS
Dir. Materials………………………………………………………………………….....................
46,710
Dir. Labor………………………………………………..………………………………………….......
90,000
Overhead………………………………………………..…………………………………….............
72,000
Total cost of Job…………………………………………………………………….....................
208,710
Total 46,710 Total 90,000
FI N I S H E D
JOB COST SHEET
Customer’s Name Reuben Company Job No. 103
Direct Materials Direct Labor Overhead Costs Applied
Date
Requisition
Number Amount
Time
Ticket
Number Amount Date Rate Amount
19-1067
Chapter 19 – Job Order Costing
Problem 19-5A (Continued)
MATERIALS LEDGER CARD
Item Material M
Received Issued
Date
Receivin
g Report Unit
s
Unit
Pric
e
Total
Price
Requi–
sition Unit
s
Unit
Pric
e
Total
Price Unit
s
Unit
Pric
e
May
1
200 250
0
MATERIALS LEDGER CARD
Item Material R
Received Issued
Date
Receivin
g Report Unit
s
Unit
Pric
e
Total
Price
Requi–
sition Unit
s
Unit
Pric
e
Total
Price Unit
s
Unit
Pric
e
May
1
95 180
#427 90 180 16,20
0
185 180
0
#38 38 180 6,840 75 180
MATERIALS LEDGER CARD
Item Paint
Received Issued
19-1068
Chapter 19 – Job Order Costing
Date
Receivin
g Report Unit
s
Unit
Price
Total
Price
Requi
–sition Unit
s
Unit
Price
Total
Pric
e
Unit
s
Unit
Pric
e
May
55 75
5
19-1069
Chapter 19 – Job Order Costing
Problem 19-5A (Continued)
GENERAL JOURNAL
a. Raw Materials Inventory…………………………………………78,700
Accounts Payable…………………………………………….. 78,700
To record materials purchases ($62,500+$16,200).
Factory Overhead…………………………………………………..102,000
Cash………………………………………………………………… 102,000
To record other factory overhead.
e. Finished Goods Inventory………………………….…………..208,710
Work in Process………………………….…………………… 208,710
To record completion of jobs.
i. Work in Process Inventory……………………………………..124,000
Factory Overhead…………………………………………….. 124,000
To apply overhead ($72,000 + 52,000).
19-1070
Chapter 19 – Job Order Costing
Problem 19-5A (Continued)
j. The ending balance in the Factory Overhead account is computed as:
Actual Factory Overhead
Miscellaneous overhead……………….……. $102,000
Indirect materials……………………………….. 1,125
PROBLEM SET B
Problem 19-1B (80 minutes)
Part 1
Total manufacturing costs and the costs assigned to each job
114 115 116 Sept. Total
From August
Direct materials….……………………....$ 14,000 $ 18,000
Direct labor….……………………………..18,000 16,000
Applied overhead*………………..…….. 9,000 8,000
Beginning work
In process…….………………………….41,000 42,000 $ 83,000
For September
*Equals 50% of direct labor cost.
Part 2 Journal entries for September
a. Raw Materials Inventory……………………..………………….400,000
Accounts Payable…………………………………………….. 400,000
To record materials purchases.
b. Work in Process Inventory……………………….…………….350,000
19-1071
Chapter 19 – Job Order Costing
Raw Materials Inventory………………..…………………. 350,000
To assign direct materials to jobs.
e. Work in Process Inventory……………………………………..109,000
Factory Overhead…………………………………………….. 109,000
To apply overhead to jobs.
Problem 19-1B (Continued)
f. [continued from prior page]
Factory Overhead…………………………………………..………30,000
Accum. Depreciation—Factory Equip……………….. 30,000
To record other factory overhead (depreciation).
Factory Overhead…………………………………………..………30,000
Raw Materials Inventory………………..…………………. 30,000
To record indirect materials.
g. Finished Goods Inventory………………………….…………..500,000
Work in Process Inventory……………………………….. 500,000
To record jobs completed ($186,000 + $314,000).
19-1072
Chapter 19 – Job Order Costing
j. Factory Overhead*……………………..…………………….……3,000
Cost of Goods Sold…………………………………………… 3,000
To assign overapplied overhead.
19-1073