JOB ORDER COSTING BOOK PROBLEMS

1. Dexter Company’s 2016 manufacturing costs were as follows:

Direct Materials and Direct Labor 100,000
Depreciation of Manufacturing equipment 70,000
Depreciation of Factory Building 40,000
Janitor’s wages for cleaning factory premises 15,000

How much of these costs should be inventoried for external reporting purposes?

2. Peter Paul Company uses a job order cost system and applies factory overhead to production
orders on the basis of direct labor cost. The overhead rates for 2016 are 200% for Dept. A and
50% for Dept. B. Job 123, started and completed during 2016, was charged with the following:

Department

A B

Direct Materials 25,000 5,000

Direct Labor ? 30,000

Factory Overhead 40,000 ?

The total Manufacturing cost associated with Job 123 should be?

3. Jorelle Corporation has a job order cost system. The following debits (credits) appeared in the
work in process account for the month of March of the current year.

March Description Amount

1 Balance 2,000
31 Direct Materials 12,000
31 Direct Labors 8,000
31 Factory Overhead 6,400
31 To finished goods (24,000)

Joell applies overhead to production at a predetermined rate of 80% based direct labor cost. Job
No. 30, the only job still in process at the end of March has been charged with direct labor of
1,000. The amount of direct materials charged to Job was?

4. Blue beach Industries has two production departments, ABC and XYZ and uses a job order cost
system. In detrmining manufacturing costs, Blue Beach applies manufacturing overhead to
production orders based on direct labor cost using the departmental rates predetermined at the
beginning of the year based on the annual budget.

The 2011 budget for the two departments are as follows:

 ABC XYZ
Direct materials 630,000 90,000
Direct Labor 180,000 720,000
Manufacturing Overhead 540,000 360,000

Actual Material and Labor costs for Job No. 678 during 2011 were as follows:
Direct Materials 22,500
Direct Labor:
Department ABC 7,200
Department XYZ 10,800
What is the total manufacturing associated with Job No. 678 for 2011?

5.

The cost of direct materials charged to Job No. 456 and Job 789 is?

The prime cost during the month amounted to:

6.
The cost of goods manufactured for February was?

The amount billed to the customer for Job 2468?

The cost of goods manufactured?

The cost of direct material; charged to Jobs 106 and 107 was?

The ending work in process was?

What is the total amount of actual factory overhead?

If Job 503 is completed and transferred, how much is the total cost transferred to the Finished
Goods Inventory?
Cost of goods punt into process must be?

The Cost of goods manufactured during the month of July is?