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
ACRS is a system of depreciation started by the Economic Recovery Tax Act of 1981. ACRS depreciation relies on recovery periods in spite of useful life. These periods were preset b

L I M I T A T I O NS OF STANDARD COSTING 1.     It may be very difficult to fix standards for all operations. 2.     Incorrect standards may result in wastage of mo

Price and Quality Aspect of Variance At this point it is serious to understand that all variance has two aspects, a price aspect and a quantity aspect: these two aspects combi

Waterloo Machining, Inc. paid $1,800,000 for factory equipment on January 1, 2012. It paid $100,000 for delivery and $220,000 for installation and modifications.  Waterloo received

Students will prepare a Comprehensive Master Budget and Budgeted Financial Statements for Earrings Unlimited for the three-month period ending June 30. This includes: Sales Budg

company XY produces a single product ''XY1" selling price per unit 15, direct materials per unit 4 direct labour per unit 3 variable overhead per unit 2 fixed overhead incurred 12

Prime Essentials Limited is a small private corporation. The owner plans to approach the bank for an additional loan or a line of credit to facilitate expansion. The company bookke

DIFFERENTIAL COSTING Marginal costing is often confused with differential costing. The word 'DIFFERENTIAL COSTING' means 'a technique used in the preparation of adhoc informati

Expenses paid in previous of their use or consumption is termed as prepaid expenses. At the ending of the year, a portion of the payment keeps unconsumed and is treated like an ass

A organization is evaluating a proposed 4-year project.  The depreciable cost will have the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installatio