Previous Entries (with ONLY one product/production)
PROBLEM A
Voyager Inc. produces customized vans in a job order shop. On August 6, 2024 the following balances
appear in the inventory records:
Finished good P179,000
Work in process 308,000
Materials -A 43,000
Materials – B 40,000
The work in process account represents, as follows:
Factory overhead-Applied 150,000
Direct labor 120,000
Direct materials 38,000
The following transactions occurred during August 2024:
(a) Purchased materials C on account, P120,000.
(b) Requisitioned P40,000 of materials A and P20,000 materials C from inventory: P56,000 applied as
direct materials; the balance was for indirect materials.
(c) Record the additional labor cost distribution in a single entry: total payroll, P208,750. Of the payroll
cost, 86% applied as direct labor, 10% as salaries of the Sales and Admin Staff, and the balance and
the remainder to indirect labor.
(d) Paid the payroll.
(e) Applied factory overhead at the rate of 120% of direct labor cost.
(f) Work in process –end amounts to P 430,437.50. Prepare the JE for completed goods.
(g) Sold on account Finished Goods at 150% of cost. Cost of Goods sold at P429,562.50
(h) Reclassify the following operating expenses incurred as part of production costs overhead
Bldg. Depreciation 200,000
Machine Repairs & Maintenance 90,000
Insurance 140,000
(i) Close over/under application of factory overhead to Cost of Goods Sold
Required: Prepare general journal entries for (a) and (i) to record these transactions.
Prepare the Cost of Goods Sold
Journal Entries:
(a) Raw Materials-C P120,000
Accounts Payable P120,000
(b) WIP P 56,000
FOHC 4,000
Raw Materials-A P40,000
Raw Materials-C 20,000
(c) WIP (86%) P179,525
FOHC(4%) 8,350
Salaries & Wages(10%) 20,875
Payroll (Accrued Salaries) P208,750
(d) Payroll P208,750
Cash P208,750
(e) WIP(179,525x120%) P215,430
FOH-Applied P215,430
WIP
Beg 308,000
(b) 56,000
© 179,525
(e) 215,430
Total 758,955 (amount credited?)
(f) 430,437.50
P 430,437.50
Amount Credited to WIP is P3 this are the completed goods to be transferred to Finished Goods Account.
(f) F/G 328,517.50
WIP 328,517.50
(g) Cost of Goods Sold 429,562.50
F/G 429,562.50
A/R 644,343.75
Sales Income 644,343.75
(h) FOC 430,000
Depreciation Exp. – FBldg. 200,000
Repairs & Main. Exp. 90,000
Insurance 140,000
(i) FOH-Applied 365,430
Under applied FOH 76,920
FOH-Control 442,350
*FOHA(150,000beg. + 215,430)
FOH-C
(b) 4,000
(c) 8,350
(h) 430,000
Total 442,350
Cost of Goods Sold 76,920
Under Applied FOH 76,920
JOB ORDER COSTING (MULTIPLE JOBS SIMULTANEOUSLY IN PROCESS)
PROBLEM B
Voyager Inc. produces customized vans in a job order shop. On August 6, 2024 the following balances appear in the
inventory records as beginning balances:
Materials A 43,000
Materials B 40,000
Finished good – JOB 175 101,000
Finished good – JOB 177 78,000
Work in process 304,000
JOB 179 JOB 180 JOB 181
Direct materials................................................................................... 26,000 7,000 5,000
Direct labor.......................................................................................... 60,000 40,000 20,000
Factory overhead.....................................................................(120%) P72,000 P48,000 P24,000
Total 158,000 97,000 49,000
The following transactions occurred during August 2024:
(a) Purchased materials on account, P120,000.
(b) Requisitioned P60,000 of materials from inventory: P56,000 applied as direct materials; the balance was for
indirect materials.
(b) Requisitioned P40,000 of materials A (P10,000 applied to Job 179, P20,000 to Job 181, and P10,000 Job
182); materials C of P20,00 (5,000 Job 180, 5,000 to Job 181, P6,000 to Job 182, and the balance was for
indirect materials).
(c) Record the additional labor cost distribution in a single entry: total payroll, P208,750. Of the payroll cost,
86% applied as direct labor (Job 179 10%, Job 180 20%, Job 181 36%, Job 182 20%), 10% as salaries of the
Sales and Admin Staff, and the balance and the remainder to indirect labor.
(d) Paid the payroll.
(e) Applied factory overhead at the rate of 120% of direct labor cost.
(f) Work in process –end amounts to P 347,180. Prepare the JE for completed goods. (Job 179, Job 180)
(g) Sold on account Finished Goods at 150% of cost (g.1).
Cost of Goods sold at_________ (job 175,177,179)(g.2)
(h) Reclassify the following operating expenses incurred as part of production costs overhead
Bldg. Depreciation 200,000
Machine Repairs & Maintenance 90,000
Insurance 140,000
(i) Close over/under application of factory overhead to Cost of Goods Sold
Required: Prepare general journal entries for (f), (g.1 and g.2), (h), and (i) to record these transactions.
Prepare the Cost of Goods Sold for the month end August 31, 2024, and
Work Sheet for JOB 180
Cost Sheet –Job 179
Materials Labor Overhead
26,000 60,000 72,000
10,000 20,875 25,050
36,000 80,875 97,050
TMC 213,925
No. of completed 100 units P2,139.25
(assumption not given in the
problem) just to compute the unit
cost for JOB 179
Cost Sheet –Job 180
Materials Labor Overhead
? ? ?
? ? ?
Cost Sheet –Job 181 not completed
Materials Labor Overhead
5,000 20,000 24,000
25,000 75,150 90,180
30,000 95,150 114,180
WIP-END 239.330
Cost Sheet –Job 182 not completed
Materials Labor Overhead
16,000 41,750 50,100
WIP-End 107,850
Materials Inventory A F/G – Job 177
Beg Bal 43,000 40,000 Beg. Bal 78,000
Balance 3,000
F/G – Job 179
Materials Inventory B 213,925
Beg. Bal 40,000
F/G – Job 180
Materials Inventory C ?
120,000 20,000
Balance 100,000
F/G – Job 175 WIP- JOB 181
Beg Bal 101,000 ?
WIP- JOB 182
?
Note: JOBS No. 175,177,179, and 180 were already completed, hence already credited in the WIP Account.
