Maryland International College

School of Graduate Studies

Course: Accounting and Finance for Managers

Corse Code: MBA-672

Cr. Hrs: 2

Group Assignment: 2

Part I: Job Order Costing System

Part II: Process Costing System – Cost of Production Report

Part III: Process Costing System – Cost of Production Report

General Instruction

i. Follow the instruction carefully.

ii. You must write your Full name, ID Number and Section.

iii. Neat and Clean handwriting has positive effect on your Assignment.

Submitted To: _________________

Submission Date: October 23/2022

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 Course: Accounting and Finance for Managers
Group Assignment 2: Job Order and Process Costing Systems

Do not forget to use the logo of MARYLAND INTERNATIONAL COLLEGE, write the title of the report, and
insert members of the group (name and ID)

Part I: Job Order Costing System

KF Plc uses a job order cost system. The following data summarize the operationsrelated to production for
March, the first month of operations:

A. Materials purchased on account, Br45,000.

B. Materials requisitioned and factory labor used:

Job Materials Factory Labor

301 Br1,850 Br2,500
302 3,150 7,220
303 2,200 5,350
304 1,800 2,400
305 4,230 6,225
306 1,770 2,900
For general factory use 1,200 5,000
C. Factory overhead costs incurred on account, Br1,800.
D. Depreciation of machinery and equipment, Br2,500.
E. The factory overhead rate is Br30 per machine hour. Machine hours used:

Job Machine Hours

301 30
302 60
303 41
304 63
305 70
306 36
Total 300
F. Jobs completed: 301, 302, 303, and 305.
G. Jobs were shipped and customers were billed as follows: Job 301, Br8,500; Job 302, Br16,150; Job
303, Br13,400

Instructions

1. Journalize the entries to record the summarized operations.

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the
identifying letters as transaction codes. Insert memo account balances as of the end of the month.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goodsaccount.
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 Part II: Process Costing System – Cost of Production Report
Ariba Coffee Company roasts and packs coffee beans. The process begins by placingcoffee beans into the
Roasting Department. From the Roasting Department, coffee beansare thentransferred to the Packing
Department. The following is a partial work inprocess account of the Roasting Department at March 31, 2020:
ACCOUNT Work in Process—Roasting Department ACCOUNT NO.

Instructions
1. Prepare a cost of production report, and identify the missing amounts for Work in Process -Roasting
Department.
2. Assuming that the March 1 work in process inventory includes $54,600 of direct materials,determine the
increase or decrease in the cost per equivalent unit for direct materials andconversion between February
and March.

Part III: Process Costing System – Cost of Production Report

White Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain
being introduced in the Milling Department. From the Milling Department, thematerials pass through the
Sifting and Packaging departments, emerging as packaged refined flour.
The balance in the account Work in Process—Sifting Department was as follows on July 1:
Work in Process—Sifting Department (900 units, 3⁄5 completed):
Direct materials (900 × $2.05) $1,845
Conversion (900 × 3⁄5× $0.40) 216
$2,061
The following costs were charged to Work in Process—Sifting Department during July:
Direct materials transferred from Milling Department:
15,700 units at $2.15 a unit $33,755
Direct labor 4,420
Factory overhead 2,708

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During July, 15,500 units of flour were completed. Work in Process—Sifting Department onJuly 31 was 1,100
units, 4⁄5 completed.
Instructions
1. Prepare a cost of production report for the Sifting Department for July.
2. Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting
to Packaging.
3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials
and conversion costs.

Good Luck !!!