Reference no: EM132617072

The university of Dehli Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of books for general sale. A job-costing system is used to cost each job. There are two direct-cost categories (direct materials and direct manufacturing labor) and one indirect -cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs).

The following data (in thousands) pertain to current year

Direct materials and supplies purchased on account Rs. 8,000

Direct material used 7,100

Indirect material issued to various production departments 1,000

Direct Manufacturing labor 13,000

Direct manufacturing labor incurred by various departments 9,000

Depreciation on building and manufacturing equipment 4,000

Miscellaneous manufacturing overhead incurred by various departments 5,500

(ordinarily would be detailed as repairs, photocopying, utilities, etc.)

Manufacturing overhead allocated at 160 per cent of direct manufacturing labor costs

Costs of goods manufactured 41,200

Revenues 80,000

Cost of goods sold 40,200

Beginning inventories

Materials control 10,000

Work-in-process control 600

Finished goods control 5,000

Required

Problem 1: Present an overview diagram of the job-costing system at the university of Delhi Press.

Problem 2: Prepare journal entries to summarize current year transactions. As your final entry, dispose of the year-end under or over allocated manufacturing overhead as a write-off to cost of goods sold. Number your entries. Explanations for each entry may be omitted.