Example of job order costing, Cost Accounting

Example of Job Order Costing

The given transactions were made by a company in the month of December.

Direct Materials

a) 8,000/- was bought on credit, out of these, materials worth 5,000/- were returned to the suppliers.

b) 50,000/- was issued from the store

c) Indirect materials issued amounted to 5,000/-

d) Direct wages allocated to production amounted to 20,000/-

e) Goods worth 200,000/- were sold

f)  Finished goods worth 100,000/- were transferred to the store.

g) The cost of goods sold was 140,000/-

h) Unpaid indirect expenses were 32,000/-

i)  Indirect wages allocated amounted to 15,000/-

j) Non-manufacturing overheads incurred amounted to 20,000/-

k) Overhead expenses charged to the jobs - 60,000/-

Required

a) Prepare the stores ledger control Account

b) Factory overhead control Account

c) W.I.P. control Account

d) Costing P and L Account

Stores Ledger Control A/c

Creditors (material)

8,000

Creditors control

5,000

 

 

W.I.P

50,000

 

 

(Indirect materials)

 

 

 

Factory overheads

5,000

Factory Overheads Control Account

Stores Ledger (material)

5,000

W.I.P

60,000

Creditors (wages)

32,000

 

 

Incurred wages

15,000

 

 

P + LA/c

 

 

 

Over absorption

8,000

 

_____

 

60,000

 

60,000

W.I.P Control Account

Stores Ledger (material)

50,000

Finished goods stock

 

 

 

control

100,000

Control (D wages)

20,000

 

 

 

 

 

 

Overhead expenses

60,000

 

 

Costing P and L Account

Finished goods control

140,000

Sales

200,000

Non manufacturing

 

Factor overhead

8,000

Overheads

20,000

absorption

 

Costing profit

48,000

 

 

Posted Date: 2/7/2013 8:04:53 AM | Location : United States







Related Discussions:- Example of job order costing, Assignment Help, Ask Question on Example of job order costing, Get Answer, Expert's Help, Example of job order costing Discussions

Write discussion on Example of job order costing
Your posts are moderated
Related Questions
what are the purposes of cost accounting

what are the accounting entries for interlocking and integrated systems of cost accounting?

Determine Equivalent Units of the Product Let assume there are 4,000 units of a product in ending inventory out of that 60 percent are fully complete whereas the remaining are

Product Versus Period Costs Another way to look at manufacturing costs is to think of them as attaching to a product. In other words, goods result from the manufacturing proces

Cost sheet is a declaration of cost for a product for given period of time.


Break-Even Calculations As they say, a picture is significance a thousand words, and this is undoubtedly true for the CVP graphic just presented. Though, everyone is not an art

Waylander Coatings Company purchased waterproofing equipment on January 6, 2013, for $320,000.The equipment was expected to have a useful life of four years, or 20,000 operating ho

Material Cost Control Therefore Materials form an important cost of output units and that should be controlled.  Material Control is more than merely recording the accounting

a factory operates a small canteen but its annual operation has consistently shown a loss: