Job Order Costing

1. Health Care Clinic

2. Pharmaceutical and Semiconductor industries
3. Produce bricks for sale to the public
4. Produces stained glass windows
5. Manufactures hair spray and hand lotion
6. Custom bridal gowns
7. Sugar
8. Blank CD
9. Custom sailboat
10. Trash bags
11. Road and Bridge Construction
12. Design custom software
13. Gatorade
14. Landscaping services
15. Car repair
16. Oil refining
17. Movies produced by star cinema
18. Medical Services businesses e.g. Hospital
19. Ship Building Company
20. Book Publishing Company
Process Costing
 NORMAL COSTING SYSTEM
TALAMBAN
Direct Material Cost ₱ 106,450,000.00
Direct Labor Cost ₱ 36,276,000.00
OVERHEAD (Assembly Support Cost) (50/DLH) ₱ 45,000.00
₱ 142,771,000.00

Budgeted indirect assembly support cost/ direct 50/DLH

labor hour (8,000,000/160,000)

ACTUAL COSTING SYSTEM

TALAMBAN
Direct Material Cost ₱ 106,450,000.00
Direct Labor Cost ₱ 36,276,000.00
OVERHEAD (Assembly Support Cost) (42/DLH) ₱ 37,800.00
₱ 142,763,800.00

Actual indirect assembly support cost/ direct labor 42/DLH

hour (6888000/164000)
ORMAL COSTING SYSTEM
BALAMBAN
₱ 127,604,000.00
₱ 41,410,000.00
₱ 50,000.00
₱ 169,064,000.00

CTUAL COSTING SYSTEM

BALAMBAN
₱ 127,604,000.00
₱ 41,410,000.00
₱ 42,000.00
₱ 169,056,000.00
 April 1, 2020 (Beginning Inventory)
Finished Goods Inventory
Work-in Process Inventory
Raw Materials Inventory

Breakdown of WIP
Job #1234
Job #1235
Job #1236

DATE TRANSACTION
Raw Materials Inventory
Accounts Payable

WIP Inventory - Job 1234

WIP Inventory - Job 1235
WIP Inventory - Job 1236
Factory Overhead Control (Indirect Mats issued to production)
Raw Materials Inventory

Raw materials inventory

Factory OH Control
WIP Inventory - Job 1235

Accounts Payable
Raw materials inventory

Factory Salaries and Wages

Salaries and Wages Payable

WIP-INVENTORY(LABOR) - Job 1234

WIP-INVENTORY(LABOR) - Job 1235
WIP-INVENTORY(LABOR) - Job 1236
Factory OH Control (Indirect Labor)
Selling and Administrative Expenses
Factory Salaries and Wages

Factory Overhead Control

Accumulated Depreciation - Building and Eqiupment
Prepaid Insurance
Accounts Payable

Work In Procsess Inventory - Job 1234

Work In Procsess Inventory - Job 1235
Work In Procsess Inventory - Job 1236
 Applied Factory Overhead

Finished Goods Inventory

Work In Procsess Inventory - Job 1234
Work In Procsess Inventory - Job 1235

Accounts Receivable
Sales

Cost of Goods Sold

Finished Goods Inventory

Cash
Accounts Receivable

Statement of Cost of Goods Manufactured and Sold

₱ 45,500.00
₱ 52,250.00
₱ 41,800.00
₱ 47,675.00
-₱ 53,765.00
₱ 133,460.00
₱ -
₱ 133,460.00

Income Statement
Sales
Less: COGS
Gross Profit
Less: S & A Expenses
Net Profit
₱ 37,500.00
₱ 47,675.00
₱ 35,000.00

Material Labor Applied Factory Overhead

₱ 7,000.00 ₱ 5,250.00 ₱ 4,200.00
₱ 8,500.00 ₱ 6,750.00 ₱ 5,400.00
₱ 4,000.00 ₱ 3,375.00 ₱ 3,200.00
₱ 19,500.00 ₱ 15,375.00 ₱ 12,800.00

DEBIT CREDIT
55,000
55,000

13250
18500
14750
6000
52500

1500
500
1000

2000
2000

95000
95000

16050
20400
15800
19000
23,750
95000

23511.25
5000
625
17886.25

12840
16320
12640
 41800

₱ 133,460.00
₱ 58,590.00
₱ 74,870.00

₱ 173,498.00
₱ 173,498.00

₱ 133,460.00
₱ 133,460.00

₱ 173,125.00
₱ 173,125.00

COGM ₱ 133,460.00
COGS ₱ 133,460.00
Net Profit ₱ 16,288.00

₱ 173,498.00
-₱ 133,460.00
₱ 40,038.00
-23750
₱ 16,288.00
Total
₱ 16,450.00
₱ 20,650.00
₱ 10,575.00
₱ 47,675.00

Beg. Balance
JOB 1234 ₱ 16,450.00
JOB 1235 ₱ 20,650.00
JOB 1236 ₱ 10,575.00

Materials
Debit Credit
₱ 35,000.00
55,000
 52500
1500
2000
₱ 91,500.00 54500
₱ 37,000.00

Factory Overhead Control

Debit Credit
6000
500
19000
23511.25
48511.25

48011.25
Added Direct Materials Added Direct Labor Applied Factory Overhead
₱ 13,250.00 ₱ 16,050.00 ₱ 12,840.00
₱ 17,500.00 ₱ 20,400.00 ₱ 16,320.00
₱ 14,750.00 ₱ 15,800.00 ₱ 12,640.00
₱ 41,800.00

Payroll Finished Goods

Debit Credit Debit
95000 ₱ 37,500.00
95000 ₱ 133,460.00
 ₱ 37,500.00

Work in Process
Debit Credit
₱ 47,675.00
13250
18500
14750
1000
16050
20400
15800
12840
16320
12640
₱ 58,590.00
₱ 74,870.00

₱ 188,225.00 134460
₱ 53,765.00
 Total
₱ 58,590.00
₱ 74,870.00
₱ 53,765.00

Finished Goods
Credit
₱ 133,460.00
Total estimated Costs of Material inventory beginning (7400 x 0.5) + (3000 x 1.2)
Total Budgeted cost of Direct Material Purchases (10,300 + 16,200)
Total cost of materials available for use as budgeted (7300+26500)
Total cost of materials inventory end as budgeted is (8000 x 0.5) + 2500 x 1.2
Total Manufacturing Cots (33800-7000-2100+50000+31000)
Cost of Goods Manufactured (105,700 - 5,000)
TGAS greater than COGS by
Total Goods placed into process
Cost of Goods Sold
 7300
26500
33800
7000
105,700 Not sure from here downwards
110,700
90000
140,700
107,700