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Cost Acctg & Control 1 - Job Order Costing

The document provides information about the Alexis Company's inventories, costs, and transactions for the month of August. It includes details on materials purchased and used in production, direct and indirect labor costs, factory overhead applied, jobs completed and sold, and expenses incurred. The requirements are to record the transactions with journal entries, prepare a schedule of cost of goods manufactured and sold, and an income statement.

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Christian Clyde Zacal Ching
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258 views

Cost Acctg & Control 1 - Job Order Costing

The document provides information about the Alexis Company's inventories, costs, and transactions for the month of August. It includes details on materials purchased and used in production, direct and indirect labor costs, factory overhead applied, jobs completed and sold, and expenses incurred. The requirements are to record the transactions with journal entries, prepare a schedule of cost of goods manufactured and sold, and an income statement.

Uploaded by

Christian Clyde Zacal Ching
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Saint Columban College

College of Business Education

ACCTG 104 – COST ACCOUNTING & CONTROL I

The Alexis Company had the following inventories on Aug 1 of the current year:
Finished Goods P 25,000
Work In Process – Job 401 7,500
Work In Process – Job 402 11,000
Materials Inventory 22,000

The following information pertains to August operations:

1. Materials Purchased on account, P28,000.


2. Materials returned to vendors due to defects, P1,000.
3. Materials issued for production, P25,000. Of this amount, P3,000 was for indirect materials; the
difference was distributed: P5,500 to Job 401; P7,000 to Job 402; and P9,500 to Job 403.
4. Materials returned to warehouse from the factory, P800, of which P300 was for indirect materials, the
balance from Job 403.
5. Factory payroll was P39,000. It was distributed as follows: P10,400 to Job 401; P12,500 to Job 402;
P10,500 to Job 403; and the balance represents indirect labor.
6. Factory overhead, other than any previously mentioned, amounted to P15,000. Included in this figure
were P3,000 for depreciation of factory building and equipment, and P950 for expired insurance on the
factory. The remaining overhead was unpaid at the end of August.
7. Paid the following expenses:
Advertising P 800
Taxes and Licenses 1,000
Utilities 2,200
Freight out 1,500
Office supplies 500
8. Depreciation of store building, P1,300; Depreciation of office furniture and fixtures, P700.
9. Factory overhead was applied to production at the rate of 80% of direct labor cost.
10. Jobs 401 and 402 were completed and transferred to finished goods warehouse.
11. Job 401 was sold and billed at a gross profit of 40% of the cost.
12. Cash collections from customers were P70,000.

Requirements:
A. Journal Entries to record the above transactions.
B. Schedule of Cost of Goods Manufactured and Sold.
C. Income Statement

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