Understanding Job Order Costing in Manufacturing Operations
School
İhsan Doğramacı Bilkent University**We aren't endorsed by this school
Course
MAN 312
Subject
Accounting
Date
Dec 12, 2024
Pages
1
Uploaded by ProfessorIron15756
Jurvin Enterprises is a manufacturing company using job order costing system. Currently, the company has one job. There is no beginning inventory. A subset of the transactions that it recorded during a recent month is shown below. a.$76,300 in raw materials were purchased for cash.b.$71,400 in raw materials were used in production. Of this amount, $65,900 was for direct materials and the remainder was for indirect materials.c.Total labor wages of $151,900 were incurred and paid. Of this amount, $133,900 was for direct labor and the remainder was for indirect labor.d.Total manufacturing overhead costs of $125,500 were incurred and paid.e.Manufacturing overhead of $129,000 was applied to production using the company’s predetermined overhead rate.f.Half of the jobs in process at the end of the month were completed.g.1/3 of the completed jobs were shipped to customers.h.Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold.Raw MaterialsFG76,30071,400164,40054,800End. Bal. 4,900End. Bal. 109,600WIPMOHDM 65,900164,400Indirect Mat. 5,500129,000DL 133,900Indirect Lab. 18,000App. MOH 129,000Others 102,000End. Bal. 164,400Total 125,500COGS54,800Applied MOH = 129.000Actual MOH = 125.500 Since Applied MOH is bigger than Actual MOH, MOH is overapplied by $3,500Adjusting Entry for the overapplication will be:Account NameDRCRMOH3,500COGS3,500
