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

Aswer 6.

Answer 1.	Schedule of Jobs undertaken in June
Job	Direct Material	Direct Labour	Factory Overhead(@ 50/ mach. Hr.)	Total
6001	9,400	8,800	3,600	21,800
6002	11,500	11,880	6,000	29,380
6003	7,600	5,960	4,800	18,360
6004	25,800	21,840	15,000	62,640
6005	16,400	16,600	6,600	39,600
6006	11,920	10,600	4,000	26,520
Total	82,620	75,680	40,000	1,98,300
Answer 2.	Schedule of Jobs completed in June
Job	Direct Material	Direct Labour	Factory Overhead(@ 50/ mach. Hr.)	Total
6001	9,400	8,800	3,600	21,800
6002	11,500	11,880	6,000	29,380
6003	7,600	5,960	4,800	18,360
6005	16,400	16,600	6,600	39,600
Total	44,900	43,240	21,000	1,09,140
Answer 3.	Schedule of Jobs Sold in June
Job	Direct Material	Direct Labour	Factory Overhead(@ 50/ mach. Hr.)	Total
6001	9,400	8,800	3,600	21,800
6002	11,500	11,880	6,000	29,380
6003	7,600	5,960	4,800	18,360
Total	28,500	26,640	14,400	69,540
This schedule supports cost of sales account
Answer 4.	Schedule of Jobs completed and on hand
Job	Direct Material	Direct Labour	Factory Overhead(@ 50/ mach. Hr.)	Total
6005	16,400	16,600	6,600	39,600
Total	16,400	16,600	6,600	39,600
This schedule supports closing stock account.