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    Job Costing and Process Costing

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    PROBLEM 1
    Analyze job cost sheet and prepare entry for completed job.
    A job cost sheet of Battle Company is given below.
    a. Answer the following questions.
    1. What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?
    2. What is the predetermined manufacturing overhead rate?
    3 What are the total cost and the unit cost of the completed job?
    b. Prepare the entry to record the completion of the job.

    Battle Company

    Job Cost Sheet
    Job No. 469 Quantity 2000

    Item White Lion Cages Date Requested 7/2
    For Tesla Company Date Completed 7/31

    Date Direct Materials Direct Labor Manufacturing Overhead

    7/10 828
    7/12 900
    7/15 440 528
    7/22 380 456
    7/24 1600
    7/27 1500
    7/31 540 648
    Cost of completed job:
    Direct Materials
    Direct Labor
    Manufacturing Overhead
    Total Cost
    Unit Cost

    (a) 1. The source documents are:

    2. The predetermined overhead rate is xxx% of direct labor cost. For example, on July 15, the computation is $xxx ÷ $xxx = 120%. The same result is obtained on July 22 and 31.

    3. The total cost is:
    Direct materials $4828
    Direct labor 1360 
    Manufacturing overhead  1632
    $7,820
    The unit cost is $3.91 ($7,820 ÷ 2,000).

    (b) July 31 Finished Goods Inventory 7520
    Work in Process Inventory 7520

    PROBLEM 2
    The Sanding Department of Han Furniture Company has the following production and manufacturing cost data for April 2005.
    ? Production: 12,000 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 40% complete as to conversion costs.
    ? Manufacturing costs: Materials $36,000; labor $30,000; overhead $37,320.
    Instructions
    Prepare a production cost report. There is no beginning work in process.

    HAN FURNITURE COMPANY
    Sanding Department
    Production Cost Report
    For the Month Ended April 30, 2005

    Equivalent Units

    Quantities Physical
    Units
    Materials Conversion
    Costs

    Units to be accounted for
    Work in process, April 1
    Started into production
    Total units

    Units accounted for
    Transferred out
         0
    xxx
    xxx
    xxx
    xxx
    Xxx

    Work in process, April 30  xxx  xxx    xxx (3,000 X 40%)
    Total units 15.000 15,000 13,200

    Costs
    Materials Conversion
    Costs
    Total

    Unit costs
    Costs in April
    Equivalent units
    Unit costs (a) ÷ (b)

    Costs to be accounted for
    Work in process, March
    Started into production
    Total costs
    $xxx
     xxx
      $2.40
    $xxx
     xxx
      $5.10
    $xxx

      $7.50

    $     0
     xxx
    $103,320

    Cost Reconciliation Schedule

    Costs accounted for
    Transferred out (12,000 X $7.50)
    Work in process
    Materials (3,000 X $2.40)
    Conversion costs (1200 X $5.10)
    Total costs

     $xxx
      xxx
    $xxx

     xxx
    $103,320

    © BrainMass Inc. brainmass.com October 9, 2019, 9:49 pm ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/job-costing-and-process-costing-198737

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    Solution Preview

    Please see the attached file

    PROBLEM 1
    Analyze job cost sheet and prepare entry for completed job.
    A job cost sheet of Battle Company is given below.
    a. Answer the following questions.
    1. What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?
    2. What is the predetermined manufacturing overhead rate?
    3 What are the total cost and the unit cost of the completed job?
    b. Prepare the entry to record the completion of the job.

    Battle Company

    Job Cost Sheet
    Job No. 469 Quantity 2000

    Item White Lion Cages Date Requested 7/2
    For Tesla Company Date Completed 7/31

    Date Direct Materials Direct Labor Manufacturing Overhead

    7/10 828
    7/12 900
    7/15 440 528
    7/22 380 456
    7/24 1600
    7/27 1500
    7/31 540 648
    Cost of ...

    Solution Summary

    The solution has two problems relating to job costing and process costing.

    $2.19