CHAPTER 19 Job Order Costing
Prob. 19–2A
1. a. Materials 39,300
Accounts Payable
b. Work in Process 66,380
Factory Overhead 6,940
Materials
Computation of cost of jobs finished:
Direct Direct Factory
Job Materials Labor Overhead Total
No. 201…
…
$3,950 $3,700 $1,860 $ 9,510
…
…
…
g. Accounts Receivable 45,740
Sales
Computation of cost of jobs sold:
Job
No. 201…………………………………
…
$ 9,510
…
…
45,740
39,300
36,020
CHAPTER 19 Job Order Costing
Prob. 19–2A (Concluded)
2.
3. Schedule of unfinished jobs:
Direct Factory
Job Labor Overhead
4. Schedule of completed jobs:
Direct Factory
Job Labor Overhead
Finished Goods, January 30
Direct
Materials Total
Work in Process Finished Goods
Direct
TotalMaterials
CHAPTER 19 Job Order Costing
Prob. 19–3A
1. and 2.
John Jobs Date Sept. 3, 2014
220 Apple Lane Date wanted Oct. 31, 2014
Cupertino, CA Date completed Oct. 28, 2014
Reupholster sofa and loveseat Job. No.
Amount Amount Amount
40 meters at $25 1,000 30 hours at $30 900 Direct materials 1,000
Mat. Time
Req. Descrip- Ticket Descrip-
No. tion Amount No. tion Amount Item Amount
508 18 meters H40 14 hours
ESTIMATE
Direct Materials Direct Labor Summary
JOB ORDER COST SHEET
Customer
Address
Item
ACTUAL
Direct Materials Direct Labor Summary
CHAPTER 19 Job Order Costing
Prob. 19–4A
1. Supporting calculations:
June 1 Cost of
Work in Direct Direct Factory Total Unit Units Goods
Quantity Process Materials Labor Overhead Cost Cost Sold Sold
No. 201 550 $16,500 $ 55,000 $ 41,250 $ 57,750 $ 170,500 $310.00 440 $136,400
Job. No.
CHAPTER 19 Job Order Costing
Prob. 19–4A (Concluded)
2. June 30 balances:
Materials…………………………
…
$ 17,000 ($82,500 + $330,000 – $395,500)
** Units in Unit Total
Inventory Cost Cost
110 $310.00 $ 34,100
No. 201
Job. No.
…
CHAPTER 19 Job Order Costing
Prob. 19–5A
1.
Sales $17,920,000
Cost of goods sold 10,864,000
Supporting calculations:
Manufacturing cost per unit (Knife):
Direct materials:
Hardened Steel Blanks………………………………
…
$4.00
2. Finished Goods balance, December 31, 2014:
(1,200,000 units – 1,120,000 units) × $9.70 = $776,000
GINOCERA INC.
Income Statement
For the Year Ended December 31, 2014
CHAPTER 19 Job Order Costing
Prob. 19–1B
a. Materials 770,000
Accounts Payable 770,000
CHAPTER 19 Job Order Costing
Prob. 19–2B
1. a. Materials 147,000
Accounts Payable
Computation of cost of jobs finished:
Direct Direct Factory
Job Materials Labor Overhead Total
No. 101…
…
$19,320 $19,500 $6,160 $ 44,980
…
…
…
g. Accounts Receivable 189,100
Computation of cost of jobs sold:
Job
No. 101…………………………………
…
$ 44,980
…
…
147,000
CHAPTER 19 Job Order Costing
Prob. 19–2B (Concluded)
2.
3. Schedule of unfinished jobs:
Direct Factory
Job Materials Labor Overhead
4. Schedule of completed jobs:
Direct Factory
Job Labor Overhead
Finished Goods, April 30
Direct
Materials Total
Work in Process Finished Goods
Direct
TotalMaterials
CHAPTER 19 Job Order Costing
Prob. 19–3B
1. and 2.
Steve Scully Date Jan. 21, 2014
160 Soda Alley Date wanted March 3, 2014
Purchase, NY Date completed March 1, 2014
Reupholster sofa and loveseat Job. No.
Amount Amount Amount
22 meters at $20 440 14 hours at $25 350 Direct materials 440
Mat. Time
Req. Descrip- Ticket Descrip-
No. tion Amount No. tion Amount Item Amount
400 10 meters H9 10 hours
ESTIMATE
Direct Materials Direct Labor Summary
JOB ORDER COST SHEET
Customer
Address
Item
ACTUAL
Direct Materials Direct Labor Summary
CHAPTER 19 Job Order Costing
Prob. 19–4B
1. Supporting calculations:
May 1 Cost of
Work in Direct Direct Factory Total Unit Units Goods
Quantity Process Materials Labor Overhead Cost Cost Sold Sold
No. 101 330 $26,400 $ 82,500 $ 59,400 $ 29,700 $ 198,000 $600.00 264 $158,400
Job. No.
CHAPTER 19 Job Order Costing
Prob. 19–4B (Concluded)
2. May 31 balances:
Materials………………………
…
$ 19,500 ($105,600 + $500,000 – $586,100)
** Units in Unit Total
Inventory Cost Cost
66 $600.00 $ 39,600
Job. No.
Job 101
…
…
CHAPTER 19 Job Order Costing
Prob. 19–5B
1.
Sales $18,400,000
Supporting calculations:
Manufacturing cost per unit:
Direct materials:
Leather…………………………………………………
…
$10.00
2. Finished Goods balance, December 31, 2014:
(500,000 units – 460,000 units) × $25.90 = $1,036,000
TECHNOLOGY ACCESSORIES INC.
Income Statement
For the Year Ended December 31, 2014
CHAPTER 19 Job Order Costing
CP 19–1
Two or three trends seem apparent. Starting with the most obvious:
a. There appears to be a strong “Friday effect.” The unit cost on Friday
A number of further pieces of information should be requested.
a. First, it would be good to verify these trends with some other products. This
CASES & PROJECTS
CHAPTER 19 Job Order Costing
CP 19–2
1. The unit costs are influenced by both the price and quantity of inputs. On the
price side, the cost of steel has dropped from $1,200 to $1,100 per ton. This is
apparently the result of the purchasing manager’s decision to reduce the cost
of raw materials by going to a new vendor. No other input prices change.
Some of the input quantities changed for the worse. Specifically:
Steel input…………………………………………………
…
2.10 tons12.60 tons2
2. A possible reason for this deterioration in performance is related to the
purchasing manager’s decision to change vendors in order to secure a lower
price per ton. The new vendor is apparently delivering a lower-quality steel
product to the company. As a result, the foundry operation is having to spend
Job 206 Job 228
Input Quantity per Unit
CHAPTER 19 Job Order Costing
CP 19–3
1. The engineer is concerned that direct labor is not related to overhead
consumption because direct labor is a small part of the cost structure.
Apparently, the company has replaced labor with expensive machine
2. Since each direct labor hour now has $1,500 of factory overhead, small
mistakes in the direct labor time estimates can have a large impact on the
estimated cost of a product. This is very critical, since the company sets selling
3. The engineer’s concern is valid. The company should consider replacing its
CHAPTER 19 Job Order Costing
CP 19–4
1. Todd should record the debits for factory wages as a debit to Work in Process.
The factory wages are product costs that must be accumulated in the cost of
producing the product. Eventually, these wage costs will become part of the finished
goods inventory and the cost of goods sold when the gift items are sold. Likewise,
2. Jeff would not be concerned about immediately expensing administrative wages
CHAPTER 19 Job Order Costing
CP 19–5
1. Direct labor cost:
Total actual (applied) overhead, 2010–2014………
…
$ 4,200,000
…
…
CHAPTER 19 Job Order Costing
CP 19–5 (Continued)
2.
Direct Labor Machine Direct Labor Machine Direct Labor Machine
Cost Hours Cost Hours Cost Hours
Actual overhead $790,000 $790,000 $870,000 $870,000 $935,000 $935,000
2014 2013
2012
CHAPTER 19 Job Order Costing
CP 19–5 (Concluded)
3. The best predetermined overhead rate is machine hours. Although the total
overhead applied for each rate developed in part (1) is the same over the entire
five-year period (as a result of the method by which the predetermined overhead