JJ Corp.
uses job-order costing system and has the following balances as of January 2,2020:
Materials P5,000
Work in Process(Job 11) 1,112.50
Finished Goods (Job 10) 12,500
The following are the transactions that occurred in January:
1. Purchase of Materials P105,000 on account
2. Materials requisitioned (issued to production) P97,500
Indirect Materials P5,000
Job 11 10,250
Job 12 22,875
Job 13 28,187.50
Job 14 8,062.50
Job 15 16,250
Job 16 6,875
3. Materials returned to storeroom from the factory totaled P3,000 of which P1,000 is for Job 11
and balance is indirect materials
4. P106,750 were incurred for employee services
Direct Labor P83,750 Direct Labor is distributed as follows:
Indirect Labor 12,000 Job 11 P3,437.50 Job 14 P7,000
Sales Commissions 5,000 Job 12 18,125.00 Job 15 15,250
Admin Salaries 6,000 Job 13 35,812.50 Job 16 4,125
5. Payment of Payroll is P90,000
6. Manufacturing Overhead costs are charged to jobs on the basis of P1.50 per DLH used.
Direct Labor Hours used for each job:
Job 11 3,250 Job 14 3,750
Job 12 9,250 Job 15 8,000
Job 13 20,500 Job 16 2,450
7. Utility Cost incurred in the factory totaled P15,000
8. Advertising Costs totaled P20,000
9. Depreciation was recorded for the year P50,000(40% for selling and administrative services
and the balance to factory)
10. During the month, Job order numbers 11, 12, 14 and 15 were completed
11. Job 11 and 12 were shipped out and the customers were billed for 180% of costs.
