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







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