L1-ASSIGNMENT-JOB ORDER COSTING

1.
Raw Material Inventory P320,000
Accounts Payable P320,000
To record the purchase of raw materials

Work in Process Inventory- JP-204 60,000

Work in Process Inventory- JP-205 100,000
Work in Process Inventory- JP-206 64,000
Manufacturing Overhead 16,000
Raw Material Inventory 240,000
To record the issuance of direct and indirect
material requisitioned for specific jobs.

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
Wages Payable 835,000
To record direct and indirect labor payroll
for production employees.

Wages Payable 835,000

Cash 835,000
To record the payment for payroll.

Work in Process Inventory 1,189,875

Manufacturing Overhead 1,189,875
To apply overhead to jobs.

Finished Goods Inventory- JP 203 852,750

Finished Goods Inventory- JP 204 865,500
Work in Process Inventory- JP-203 852,750
Work in Process Inventory- JP-204 852,750
To transfer completed goods to FG Inventory.

Accounts Receivable 2,372,250

Sales 2,372,250

Cost of Goods Sold 1,581,250

Inventory 1,581,250
To record the sale of goods on account.
 2.
:
a. Material purchased during January
(Total material placed in Jan + Ending material inv. In Jan - Beg. inventory)

60,000 + Purchases – 80,000 = 360,000

Purchases= 360,000 + 80,000 – 60,000
Purchases= P380,000

b. Cost of Goods Sold during January

(Finished Goods Inv. Beg. + COGS completed in Jan. - Finished Goods Inv. End.)

80,000 + 720,000 – 60,000 = P740,000

c. Direct Manufacturing Labor Costs incurred during January

(DL = direct manufacturing labor costs ÷ direct manufacturing labor hours) x (Direct manufacturing labor hours for January)

Direct Labor = 8,0000/125 = P64/hr x 2,500hrs = P160,000

d. Manufacturing Overhead Allocated during January

(budget for MOH ÷ budget for direct manufacturing labor) x (Direct Manufacturing Labor Costs incurred during January)

2,400,000/1,600,000 = 150% DL cost x 160,000 = P240,000

e. Balance, Wages Payable Control, December 31, 2019

(Wages Payable Control,1/31/2020 + gross plant payroll on January –

12,000 + 208,000 – 200,000 = P20,000

f. Balance, Work in Process Inventory Control, January 31, 2020

(unfinished job in Jan. w/ direct manufacturing labor costs) + (unfinished job in Jan. w/ direct manufacturing labor costs x DL cost) + (direct material costs on
unfinished job on Jan.)

8,000 + (8,000 x 150%) + 32,000 = P52,000

g. Balance, Work in Process Inventory Control, December 31, 2019
(Work in Process Inventory Control, January 31, 2020 + COGS completed in Jan. - Manufacturing Overhead Allocated during January - Direct Manufacturing
Labor Costs incurred during January – Total material placed into production during January)

52,000 + 720,000 – 240,000 – 160,000 – 360,000 = P12,000

h. Balance, Finished Goods Inventory Control, January 31, 2020

i. (Beg. FGIC + Cost of goods completed during January - Cost of Goods Sold during January)

80,000 + 720,000 – 740,000 = P60,000

j. Manufacturing Overhead underapplied or overapplied for January

Applied P240,000
Actual P228,000

P12,000 overapplied Manufacturing Overhead