Question

Job Cost Flows, Journal Entries On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,720 Work-in-Process Inventory 21,350 Finished Goods Inventory 8,700 Work-in-process inventory is made up of three jobs with the following costs:

Job Cost Flows, Journal Entries On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,720 Work-in-Process Inventory 21,350 Finished Goods Inventory 8,700 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,804 $2,640 $3,650 Direct labor 1,800 1,560 4,300 Applied overhead 1,080 936 2,580 During April, Sangvikar experienced the transactions listed below. a. Materials purchased on account, $28,000. b. Materials requisitioned: Job 114, $16,500; Job 115, $12,000; and Job 116, $5,000. C. Job tickets were collected and summarized: Job 114, 150 hours at $14 per hour; Job 115, 220 hours at $14 per hour; and Job 116, 80 hours at $18 per hour. d. Overhead is applied on the basis of direct labor cost. e. Actual overhead was $4,279. f. Job 115 was completed and transferred to the finished goods warehouse. g. (1) Job 115 was shipped, and (2) the customer was billed for 125 percent of the cost.

Answer 1

1080 Total OH allocated in Job 114 Divide: DLC of Job 114 OH rate as % of DLC: 1800 60% 116 Job cost Sheet: Beginning Inventory Current cost Material Labour Overheads Total cost 10530 5000 114 5684 16500 2250 1350 25784 115 5136 12400 3740 2244 23520 1440 864 17834 S.no Credit Debit 28000 a 28000 33900 b 33900 7430 C 7430 Dr 4458 d Journal entries: Particulars Raw materiall Inventory A/c Dr To Accounts Payable A/c WIP Inventory A/C Dr To Raw material inventory (16500+12400+5000) A/C WIP Inventory A/C Dr To Wages payable A/C (150*15+220*17+80*18) WIP Inventory A/C To Manufacturing overheads (7430*60%) Manufacturing Overheads A/C Dr To Accounts Payable A/C Finished Goods inventory A/C Dr TO WIP Inventory A/C Cost of good sold A/C To Finished Goods inventory A/c Accounts receivable A/c To Sales revenue A/C (23520*125%) 4458 4765 e 4765 23520 f 23520 Dr 23520 8 23520 Dr 29400 h 29400

23,520 Work in process inventory Balance Raw material Inv. Wages Payable Manufacturing Overheads Balance Finished Goods Inventory Balance Work in process inv. Ending balance 21,350 Finished Goods 33,900 7,430 4,458 43,618 23,520 8,700 Cost of goods sold 23,520 8,700