L1- ASSIGNMENT- JOB ORDER COSTING

1.
) ADJUSTING ENTRIES
Items Particulars DEBIT CREDIT
a. Raw Materials Inventory 320,000  
  Accounts Payable 320,000
  To record purchase of raw materials on account  
b. Work in Process Inventory (JP-204) 60,000  
  Work in Process Inventory (JP-205) 10,000  
  Work in Process Inventory (JP-206) 64,000  
  Manufacturing Overhead 106,000  
  Raw Materials Inventory 240,000
To record the issuance of direct and indirect materials
requisitioned for the specific jobs  
c. Work in Process Inventory (JP-203) 83,500  
  Work in Process Inventory (JP-204) 167,000  
  Work in Process Inventory (JP-205) 292,250  
  Work in Process Inventory (JP-206) 250,500  
  Manufacturing Overhead 41,750  
  Accrued payroll 835,000
  To record direct and indirect labor payroll for production  
d. Accrued payroll 835,000  
  Cash 835,000
  To record payment of payroll of employees  
e. Work in Process Inventory (JP-203) 125,250  
  Work in Process Inventory (JP-204) 250,500  
  Work in Process Inventory (JP-205) 438,375  
  Work in Process Inventory (JP-206) 375,750  
Manufacturing Overhead 1,189,875
  To apply overhead to specific jobs  
f. Finished Goods Inventory (JP-203) 852,750  
Work in Process Inventory (JP-
  203) 852,750
  To record completion of job JP-203  
  Finished Goods Inventory (JP-204) 865,500  
Work in Process Inventory (JP-
  204) 865,500
  To record completion of job JP-204  
g. Accounts Receivable 606,000  
  Sales 606,000
  To record sale of JP-201  

  Cost of Goods Sold 404,000  

Finished Goods Inventory (JP-
  201) 404,000
  To record cost of goods sold for JP-201  

  Accounts Receivable 468,000  

  Sales 468,000
To record sale of JP-202
   
  Cost of Goods Sold 312,000  
Finished Goods Inventory (JP-
  202) 312,000
To record cost of goods sold for JP-202
   
   Accounts Receivable 1,298,900  
  Sales 1,298,900
  To record sale of JP-204  

  Cost of Goods Sold 865,500  

Finished Goods Inventory (JP-
  204) 865,500
  To record cost of goods sold for JP-204    

2.
) Materials Inventory Control Wages Payable Control
12/31/2019 60,000 360,000 c.   20,000 Beginning
Purchases 380,000 Payment 200,000 208,000 h.
e. Balance 80,000   12,000 1/31/2020
Work in Process Inventory Control Manufacturing Overhead Control
Charge
Beginning 12,000 720,000 d. s 228,000 240,000 i.
c. 360,000  
g. 160,000 Manufacturing Overhead Control
Charge
i. 240,000 s 228,000 240,000 i.
Ending 52,000
Finished Goods Inventory Control Cost of Goods Sold
12/31/2019 80,000 740,000 CGS   740,000
d. 720,000  
Ending 60,000

Required:
a. Material purchased during January
60,000 + Purchases - 80,000 = 360,000
Purchases = 360,000 - 60,000 +80,000
Purchases = 380,000
b. Cost of Goods Sold during January
Cost of Goods Sold = 80,000 +720,000 - 60,000
Cost of Goods Sold = 380,000
c. Direct Manufacturing Labor Costs incurred during January
Direct Labor cost per hour = 8,000/125 = 64 DLH
Total Direct Manufacturing Labor Costs = 2,500 x 64 DLH
Total Direct Manufacturing Labor Costs = 160,000
d. Manufacturing Overhead Allocated during January
Overhead rate = 2,400,000/1,600,000
Overhead rate = 150% DL Cost
Manufacturing Overhead allocated = 160,000 x 150%
Manufacturing Overhead allocated = 240,000
e. Balance, Wages Payable Control, December 31, 2019
Beginning wages payable control + 200,000 - 208,000 = 12,000
Beginning wages payable control = 12,000 - 200,000 + 208,000
Beginning wages payable control = 20,000
f. Balance, Work in Process Inventory Control, January 31, 2020
WIP, Ending = 8,000 + (8,000 x 150%) +32,000
WIP, Ending = 52,000
g. Balance, Work in Process Inventory Control, December 31, 2019
WIP, Beginning + 360,000 + 160,000 + 240,000 - 720,000 = 52,000
WIP, Beginning = 52,000 - 360,000 - 160,000 - 240,000 + 720,000
WIP, Beginning = 12,000
h. Balance, Finished Goods Inventory Control, January 31, 2020
 Finished Goods Inventory, Ending = 80,000 + 720,000 - 741,000
Finished Goods Inventory, Ending = 60,000
i. Manufacturing Overhead underapplied or overapplied for January
Applied Overhead 240,000
Actual Overhead 228,000
Overapplied 12,000