JenJen Printers, Inc., is using job order cost accounting system for some time.

Assume that on June 1 these balances appear in the following accounts:

Raw Materials 50,000
Work-in-process 40,000
Finished goods 30,000

Complete the following for the transactions happened in June

1 Journal entries to record all transactions
2 Ledger postings to relevant T-accounts
3 Statement of cost of goods manufactured and sold
Bal.
a. Purchased additional raw materials amounting to 86,900 on account

Raw Materials Inventory 86,900.00

Accounts Payable 86,900.00

b. During the month, raw materials costing 90,400 were used where 5,800 of it is indirect materials.

Work in Process Inventory 84,600.00

Factory Overhead Control 5,800.00
Raw Materials Inventory 90,400.00

c. During the month, the following wages were incurred. 35,800 of this is for indirect laborers

Wages paid to EE 100,500.00

SSS Contribution 200.00
Pag-Ibig Contribution 300.00
Withholding Tax 1,300.00

Factory Payroll 102,300.00

Withholding Tax Payable 1,300.00
SSS Contribution Payable 200.00
Pag-Ibig Contribution Payable 300.00
Cash 100,500.00

Work in Process Inventory 66,500.00

Factory Overhead Control 35,800.00
Factory Payroll 102,300.00

d. Other overhead costs, such as utilities, insurance, and depreciation totaling 23,500 were incurred.

Factory Overhead 23,500.00

Accounts Payable/Other Account 235,000.00

e. Factory overhead is applied on the basis of 80% of direct labor costs.

Work in Process Invty 53,200.00

Factory Overhead Applied 53,200.00

f. Products costing P225,100 were completed.

Finished Goods Invty 225,100.00

Work in Process Invty 225,100.00

g. During the month, finished goods costing P221,500 were sold to various customers
The selling price of the goods was P305,000.

Accounts Receivable 305,000.00

Sales Revenue 305,000.00
Cost of Goods Sold 221,500.00
Finished Goods 221,500.00

h. Allocate your overhead variance assuming amount is immaterial.

Factory Overhead Applied 53,200.00

Cost of Goods Sold 11,900.00
Factory Overhead Control 65,100.00
 Procurement Production
Raw Materials Inventory Work in Process Inventory
BB 50,000.00 BB 40,000.00
a 86,900.00 90,400.00 b b. 84,600.00 225,100.00
c. 66,500.00
Bal. 46,500.00 e. 53,200.00

Bal. 19,200.00
Factory Payroll

Overhead Control Applied Overhead

b. 5,800.00
c. 35,800.00 53,200.00
d. 23,500.00

65,100.00 - - 53,200.00
 JenJen Printers, Inc
Statement of Cost of Goods Manufactured and Sold
Month Ended June 30, 2020

Direct Materials
Materials Inventory, June 1 ₱50,000.00
Purchases 86,900.00
Total Materials Available for Use 136,900.00
Less: Materials Inventory, June 30 46,500.00
Total Materials Used 90,400.00
Less: Indirect Materials Used 5,800.00
Direct Materials Used ₱84,600.00
Direct Labor 66,500.00
Manufacturing Overhead - Applied 53,200.00
Total Manufacturing Cost ₱204,300.00
Add: Work in Process Inventory, June 1 40,000.00
Total Costs Put into Process ₱244,300.00
Less: Work in Process Inventory, June 30 19,200.00
Cost of Goods Manufactured ₱225,100.00
Add: Finished Goods Inventory, June 1 30,000.00
Total Goods available for sale ₱255,100.00
Less: Finished Goods Inventory, June 30 33,600.00
Cost of Goods sold - Normal ₱221,500.00
Add(Less): Underapplied(Overapplied) OH 11,900.00
Cost of Goods Sold - Actual ₱233,400.00
 Cost of Goods Sold

WIP/Units Produced DM
DL
OH
TOTAL MC
+ WIP,BEG
- WIP,END
CGM
+ FG, BEG
- FG, END
COGS
 Job Order Costing
1 The following data were taken from the records of So Easy Company:

9/30/2020 10/31/2020

Inventories:
Raw Materials ? 50,000.00
Work in Process 80,000.00 95,000.00
Finished Goods 60,000.00 78,000.00

- Raw materials purchased amount to 46,000

-Factory overhead amount to 63,000 which is 75% of direct labor cost
-Selling and administrative expenses amount to 25,000 which is 8% of sales
-Net income for October 2020, 40,000.

Compute for the following:

280,500.00 1. Total Manufacturing cost
265,500.00 2. Cost of goods manufactured
247,500.00 3. Cost of godds sold
137,500.00 4. Raw materials, September 30

2 Foster Company uses job order costing. At beginning of August, two jobs were in process:

Job 769 Job 772

Materials 80,000.00 28,000.00
Direct Labor 40,000.00 12,000.00 WIP, BEG
Applied FOH 1.5 60,000.00 18,000.00 1.5
180,000.00 58,000.00

-There was no inventory of finished goods on August 1. FG, BEG

-During the month of August, Job 773,774,776,778 and 779 were started.
-Materials requisitions for August totaled 520,000 direct labor cost, P400,000 and actual factory ove
-The only job still in process at the end of August is Job 779, with costs of 56,000 materials and 36,0
Job 776, the only finished job on hand at the end of August has a total cost of 80,000

The cost of goods sold at normal is:

1,532,000.00
 Raw Materials Inventory
137,500.00
46,000.00 133,500.00

50,000.00

Sales 312,500.00
84,000.00 DL -COGS 247,500.00
312,500.00 Sales -Opex 25,000.00
Net Income 40,000.00

DM
DL
OH
TOTAL MC 1,520,000.00
+ WIP,BEG 238,000.00
- WIP,END 146,000.00
CGM 1,612,000.00
+ FG, BEG -
- FG, END 80,000.00
COGS 1,532,000.00

OH RATE = BUDGETED OVERHEAD

BASIS

238,000.00

0
Actual MC Normal
0 and actual factory overhead, 640,000. 1,560,000.00 1,520,000.00
,000 materials and 36,000 for direct labor.
 Work in Process Inventory Finished Goods
80,000.00 BB 60,000.00
x 265,500.00 247,500.00
x 280,500.00 265,500.00
Bal. 78,000.00

Bal. 95,000.00

DM used 133,500.00
280500 DL 84,000.00
OH 63,000.00

FOH APPLIED
600000
54000
 Spoilage is charged to

a. To recognize all produc

Work in Process
Direct Materials
Payroll
Factory Overhead A

b. To recognize spoilage c
Spoiled Goods
Factory Overhead Con
Work in Process

c. To record transfer of c
Finished Goods
Work in Process

Spoilage is charged to

a. To recognize all produc

Work in Process
Direct Materials
Payroll
Factory Overhead A

b. To recognize spoilage c
Spoiled Goods
Work in Process

c. To record transfer of c
Finished Goods
Work In Process
 SPOILAGE

Spoilage is charged to all production Additional cost is charged to all pro

To recognize all product cost a. To recognize all product cost

Work in Process 160,000.00 Work in Process
Direct Materials 60,000.00 Direct Materials
Payroll 52,000.00 Payroll
Factory Overhead Applied 48,000.00 Factory Overhead Applied

Materials = 4,000 x 15 Materials

Payroll = 4,000 x 13 Payroll
Overhead = 4,000 x 12 Overhead

To recognize spoilage cost and charge to FOH. b. To recognize rework.

Spoiled Goods 5,400.00 Factory Overhead Control
Factory Overhead Control 6,600.00 Direct Materials
Work in Process 12,000.00 Payroll
Factory Overhead Applied
Spoiled = 300 x 18
WIP = 300 x 40

To record transfer of completed units to Finished Goods Inventory c. To record transfer of completed un
Finished Goods 148,000.00 Finished Goods
Work in Process 148,000.00 Work in Process

Spoilage is charged to the specific job. Additional cost is charged to specifi

To recognize all product cost a. To recognize all product cost

Work in Process 156,000.00 Work in Process
Direct Materials 60,000.00 Direct Materials
Payroll 52,000.00 Payroll
Factory Overhead Applied 44,000.00 Factory Overhead Applied

Materials = 4,000 x 15 Materials

Payroll = 4,000 x 13 Payroll
Overhead = 4,000 x 11 Overhead

To recognize spoilage cost and charge to FOH. b. To recognize rework.

Spoiled Goods 5,400.00 Work in Process - Job no. 3000
Work in Process 5,400.00 Direct Materials
Payroll
Factory Overhead Applied
To record transfer of completed units to Finished Goods Inventory
Finished Goods 150,600.00
Work In Process 150,600.00 c. To record transfer of completed un
Finished Goods
Work in Process
 REWORK

l cost is charged to all production

ize all product cost

rocess 160,000.00
Materials 60,000.00
52,000.00
y Overhead Applied 48,000.00

= 4,000 x 15
= 4,000 x 13
= 4,000 x 12

ize rework.
verhead Control 8,000.00
Materials 2,000.00
4,000.00
y Overhead Applied 2,000.00

transfer of completed units to Finished Goods Inventory

Goods 160,000.00
n Process 160,000.00

l cost is charged to specific job

ize all product cost

rocess 156,000.00
Materials 60,000.00
52,000.00
y Overhead Applied 44,000.00

= 4,000 x 15
= 4,000 x 13
= 4,000 x 11

ize rework.
rocess - Job no. 3000 8,000.00
Materials 2,000.00
4,000.00
y Overhead Applied 2,000.00
 transfer of completed units to Finished Goods Inventory
Goods 164,000.00
n Process 164,000.00