Quiz Assignment 4

PROBLEM 1
Assume the following relates to Candy Corporation for the month of January
Job No. 101 Job No 102 Job No 103
In process, January 1
Materials P40,000 P30,000 -
Labor 60,000 40,000 -
Overhead 75,000 50,000 -
Cost added in January
Materials 55,000 80,000 92,000
Labor 80,000 95,000 115,000
Actual overhead incurred in January amounted to P375,000. Job No 101 and 102 were completed
and transferred to finished goods warehouse in January. Overhead is applied using a predetermined
overhead rate. Job 101 was sold for P550,000.

COMPUTE FOR:
1. Work in Process, January 1
2. Overhead applied to production in January assuming same factory overhead rate
3. Cost of goods manufactured
4. Cost of goods sold (actual)
5. Finished goods inventory, January 31
6. Work in process inventory, January 31

PROBLEM 2
Summarized data for jobs worked on during January, February and March 2020 appear below
COSTS INCURRED
JOBS
JANUARY FEBRUARY MARCH
1 P5,400
2 3,600
3 4,800
4 4,200 P4,000
5 3,550
6 5,850 P6,500
7 9,600 3,800
8 4,500 4,200
9 2,500
10 6,000

Jobs Completed Jobs Sold

January 1, 2, 3 1, 3
February 4, 5 2, 5
March 7, 8 7, 8
COMPUTE FOR
7. Work in process inventory, January 31
8. Work in process inventory, February 28
9. Work in process inventory, March 31
10. Finished Goods inventory, January 31
11. Finished Goods inventory, February 28
12. Finished Goods inventory, March 31
13. Cost of Goods sold for January
 14. Cost of Goods sold for February
15. Cost of Goods sold for March

The Table and Chair Manufacturing Company received orders from customers on January 1, 2019 as
follows:
Job No. 101 Blims Company placed an order for 50 table. The price agreed upon for
the job is P250,000. January 18 is the expected date of completion.
Job No. 102 Nice Furniture Store placed an order for 24 chairs. The price agreed upon
for the job is P40,000. January 25 is the expected date of completion
Both jobs will be formed in the Assembly Department and cleaned and checked in the Finishing
Department. The table and chair Manufacturing Company uses a job order cost system. The
following information relates to Jobs 101 and 102.
a. The purchasing Department purchased the following on January 2, 2019
Direct materials: 100 sheets of Narra for P140,000
Indirect materials:
20 cases of glue for P5,000
10 cases of nails for P3,000
50 gallons of varnish for P2,000

b. The following materials were requisitioned

Quantity Description Amount
ASSEMBLY DEPARTMENT
Direct labor-Job 101 75 sheets Narra P100,500
-Job 102 7 sheets Narra 9,800
FINISHING DEPARTMENT 10 gallons Varnish 400

c. Labor cost according to labor time cards and payroll summary were as follows:
Assembly Finishing Total
Direct labor-Job 101 P27,500 P4,250 P31,750
-Job 102 12,000 2,700 14,700
FINISHING DEPARTMENT 7,000 1,000 8,000

d. Additional factory overhead incurred:

Rent expense P15,000
Depreciation-machines 3,600
Depreciation-factory building 4,900
Utilities expense 2,250
Payroll taxes 3,000
e. Factory overhead is applied to each job upon completion as follows:
Assembly department - 120% of direct labor cost
Finishing Department - 75% of direct labor cost

f. Job 101 was completed on February 25, 2019 and Job 102 was completed on February 28,
2019. Both jobs were transferred to the finished goods storeroom upon completion.
g. Job 101 was picked-up on February 26 and Job 102 was picked up on March 1. The
customer for Job 101 paid cash, and the customer for Job 102 charged his account

REQUIRED:
Prepared Journal Entries for the above transaction
Prepae Job Order Cost Sheeet for Job 101 and 102