Chapter 10 Accounting Systems for Manufacturing Businesses 2

Chapter 10 Accounting Systems for Manufacturing Businesses 21 Entries and schedules for unfinished jobs and completed jobs 0-2 b Equipment Company uses a job order cost system. The following data summarize es related to production for June 20Y4, the first month of operations Obj 5 the operations re purchased on account, $93,600, ls requisitioned and factory labor used Materials , h Materials 5.Work in Process, balance, $89,160 Materials Factory Laboe No. 6001 No. 6002 No. 6003 No. 6004 No. 6005 No. 6006 For general factory use 9.400 11,500 7.600 25,800 16.400 11,920 8.800 11,880 5,960 21,840 16,600 10,600 13.000 overhead costs incurred on account, $18,000. c Factory d Depreciation of machinery and equipment, $6.240. e The factory overhead rate is $50 per machine hour. Machine hours used Job No. 6001 6002 No. 6003 No. 6004 No. 6005 No. 6006 Total Machine Hours 72 120 96 300 132 f Jobs completed: 6001, 6002, 6003, and 6005 & Jobs were shipped and customers were billed as follows: Job 6001, $26,000, Job 6002, $36,000: Job 6003, $48,000. Instructions 1. Prepare a schedule summarizing manufacturing costs by job for June. Uise the following form: Job Direct Materials Direct Labor Factory Overhead Total 2. Prepare a schedule of jobs finished in June. 3. Prepare a schedule of jobs sold in June. What account does this schedule support for the 4. Prepare a schedule of completed jobs on hand as of June 30, 20Y4. What account does 5. Prepare a schedule of unfinished jobs as of June 50, 20Y4. What account does this schedule 6 Determine the gross profit for June based upon the jpobs sold. month of June this schedule support support?

Solution

Overhead are calculated = machine hour* per hour rate50$

2)Finished goods schedule:

3)Sold jobs:

Schedule of jobs sold in June support COGS account in month of june. since these jobs will be removed from COGS accounts.

4Completed job in hand:

This schedule support Finished good account since all completed jobs transfer to FG account from WIP account.

5Unfinished job:

This schdule support to WIP account.

6) gross profit

Schedule of summary of cost for each job
	Material	labour	overhead	Total
6001	9400	8800	3600	21800
6002	11500	11880	6000	29380
6003	7600	5960	4800	18360
6004	25800	21840	15000	62640
6005	16400	16600	6600	39600
6006	11920	10600	4000	26520