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JOB ORDER COST SYSTEM Cost Fo Goods Manufactured and Sold

LENIKIKO Manufacturing Company provides a summary of account balances and transactions for January 2022. Key transactions include purchasing raw materials for $280,000, issuing $180,000 of raw materials for production with 10% being indirect materials, and incurring direct labor of $120,000 and other expenses totaling $245,000. The company finished the month with $75,000 of work in process and $90,000 of finished goods inventory unsold. Financial statements are required showing costs of goods manufactured and sold using the actual costing system.

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34 views2 pages

JOB ORDER COST SYSTEM Cost Fo Goods Manufactured and Sold

LENIKIKO Manufacturing Company provides a summary of account balances and transactions for January 2022. Key transactions include purchasing raw materials for $280,000, issuing $180,000 of raw materials for production with 10% being indirect materials, and incurring direct labor of $120,000 and other expenses totaling $245,000. The company finished the month with $75,000 of work in process and $90,000 of finished goods inventory unsold. Financial statements are required showing costs of goods manufactured and sold using the actual costing system.

Uploaded by

Eli
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ACCT 055

Job 0rder Cost System; ACTUAL COSTING

LENIKIKO Manufacturing Company has the following account balances at the start of January, 2022:
Raw Materials Inventory 50,000
Work in Process Inventory 150,000
Finished Goods Inventory 120,000

The following is the summary of transactions for the month of January:


1) Purchased raw materials on account P200,000 and for cash, 80,000
2) Issuance of raw materials to production, 180,000 of which 10% is indirect materials
3) Company payroll for the month: Direct Labor, 120,000; Indirect labor 25,000; Marketing
Expenses, 40,000, and Administrative Expenses, 80,000. (Use control account for
marketing and administrative expenses, respectively.)
4) The following were accrued at the end of January: (a) electricity, 22,000; (b) rent, 10,000'
and taxes and permits, 5,000. of the given expenses, 50% is allocated to factory,
20% to marketing, and 30% to administrative
5) Depreciation for the month: Factory Plant & Equipment, 7,500; Office Furniture and Fixture,
7,500
6) Expired Insurance, 10,000, allocated in the same manner as in #4
7) Overhead is applied to production
8) At the end of the month, unfinished jobs totaled 75,000 and unsold finished goods amounted to
90,000.00
9) LENIKIKO Manufacturing Company uses the actual cost system in accumulating cost and perpetual
system in accounting for the inventory. The company's mark up on cost is maintained at
40% for the past two years all on a 30 days term.
REUIRED: A Determine the following:
1 Raw Materials Inventory on January 31
2 Direct materials charged to the job
3 Total Prime Costs for the period
4 Amount of Overhead charged to the job
5 Cost of goods Manufactured
6 Costs of Goods Sold
7 Selling Price of the goods Sold
8 Total Marketing & Administrative costs
9 Net income for the period

B Prepare the JOURNAL ENTRIES

C Prepare the Statement of Costs of Goods Manufactured

D Prepare the Statement of Costs of Goods Manufactured Sold


uary, 2022:

0; Marketing
ol account for

rent, 10,000'
ted to factory,

iture and Fixture,

oods amounted to

g cost and perpetual


cost is maintained at

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