Job Costing and Process Costing
Not what you're looking for?
Please see 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 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
Purchase this Solution
Solution Summary
The solution has two problems relating to job costing and process costing.
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 ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Introduction to Finance
This quiz test introductory finance topics.