Pr

oject1.
1.ABCCompanyusesj ob-ordercosti
ng.I
tincurr
edt hefoll
owingcostsforjob
A301:20poundsofr awmat eri
als(al
ldir
ect)wereissuedt obeusedforjob
A301atacostof$10perpound.Thr eepeoplewer eassignedtoworkon
JobA301atar ateof$15perhour .Recordsshowt hatat ot
alof30direct
labor-hourswerewor kedonJobA301.
Manuf actur
ingoverheadisappli
edbasedondi rectlabor-hours.Att
he
beginningoftheyear,esti
matedtotalmanufacturi
ngov erheadwas
$350,000andt hetotaldi
rectl
aborhoursincurr
edwoul dbe30, 000.

Requi
red: Det
ermi
net
hec
ostas
signedt
oJobA301.

Pr
oject2.

2.XYZusesj ob-or dercost ing.I tappliesov erheadcosttojobsont hebasi sofdi

rect
l
abor -hour s.Fort hecur renty earthecompanyest imatesthati twillwork20,
000
directl abor -hour sandwi llincur$650, 000ofmanuf actur
ingov er
head.
Thef ollowi ngt ransact i
onst ookpl acedur ingt heyear:
a)$300, 000ofr awmat eri
alswer epur chasedonaccount
b)Rawmat erialswer ei ssuedi ntopr oduct i
on, $90,000dir
ectmat eri
alsand
$40,000i ndi rectmat er ials
c)Laborcost si ncur red:$40, 000di rect ,$130, 000indir
ect,salesc ommi ssi
ons
$50, 000, admi nistrat i
v esalaries$100, 000.
d)Utili
tycost sf ort hef actorywer e$60, 000.
e)Depr eci ationr ecor dedwas$300, 000( 70%r el
atedtofactory;30%r elat
edto
admi nistrativeof fices) .
f)Manuf act uringov er headwasappl iedt opr oduct i
on.Actualdirectlabor-
hoursi ncur redwer e22, 000.
g)Uni tscost i
ng$300, 000wer ecompl etedandt ransfer
redintothef inished
goodsi nv ent ory.
h)Goodswi t
hacostof$150, 000wer esol donaccountf or$200,000.

Requi
red
1.Preparej
ournalent
ry
2.Posttheentr
iestoTaccount
3.IsMOHunderappl i
edoroverappl
i
edf
ort
hey
earandpr
epar
eaj
our
nal
tocl
ose
anybalanceintheMOH

ByKI
NDYEM. Jobcosti
nfor
mat
ion
Pr
oject3
3.DalolCorpor
ati
on,
whichbeganoper
ationsonJanuar
y1oft
he
currenty
ear,r
epor
tedthef
oll
owi
nginformati
on:

Esti
matedmanuf actur
ingoverhead $500,000
Actual
manuf actur
ingoverhead 539,000
Est
imateddi r
ectlaborcost 380,000
Act
ualdirectlaborcost 400,000
Tot
aldebitsintheWI Paccount 1,880,000
Tot
alcreditsintheWI Paccount 820,000

XYZusesanor mal costsystem andappliesmanufacturi

ngov er
headtoj
obson
thebasisofdirectl
aborcost .A70%mar kupisaddedt othecostofcomplet
ed
producti
on.Whenf inishedgoodsar esold.OnDecember31, jobno.002wast he
onlyjobthatremainedi nproducti
on.Thatjobhaddirect-materi
alanddi
rect-
l
aborchar gesof$17,500and$34, 000,
respecti
vel
y.

Required:
a)Det ermi
nethecompany '
spredet
erminedoverheadr at
e.
b)Determinetheamountofunderorov erappli
edov erhead.Besuretol
abel
youranswer
.
c)Comput etheamountofdi rectmat
eri
alsusedinpr oducti
on.
d)Calculat
ethebal ancet
hecompanywoul dreportasendi ngwork-i
n-
processinvent
ory.
e)Preparethejournalent
ryneededtorecordDal
ol sales,whi
chareall
madeonaccount .

ByKI
NDYEM. Jobcosti
nfor
mat
ion
Project4
4.Kal i
tyst eel f
act or ywhi chusesaj ob-cost ingsy stem beganbusi nesson
Januar y1, 2004andappl i
esmanuf act uri
ngov erheadont hebasi sof
direct-laborcost .Thef ollowingi nfor mationr elatesto2004:
 Budget eddi rectlaborandmanuf acturingov erheadwer e
anticipatedt obe$300, 000and$450, 000, respect i
vely .
 Jobnos.101, 102, and103wer ebegundur ingt hey earandhad
thef oll
owi ngchar gesf ordirectmat erialanddi rectlabor :
Job# Dir
ectMat eri
al s DirectLabor
101 $245, 000 $65,000
102 420,000 80,
000
103 95,000 70,
000
 Jobnos.101and102wer ecompl etedandsol donaccountt o
customer satapr of i
tof80%ofcost .Jobno.103r emai nedin
product ion.
 Act ual manuf acturingov erheadbyy ear -endt otaled
$340, 000. kalitysteel adjustsall under -andov erappl iedov erhead
tocostofgoodssol d.
Required:
a) Comput et hecompany '
spr edetermi nedov erheadappl i
cat ionr
at e.
b) Comput ekal itysteel endingwor k-i n-pr ocessinv entory.
c) Det ermi nekal ityst eel salesrev enue.
d) Wasmanuf actur i
ngov erheadunder -orov erappl i
eddur ing2004?Byhowmuch?
e)Pr esentthenecessaryjour
nal
ent r
ytohandleunder
-or
overappliedmohaty earend
f)Doest hepresenceofunder-orov erappli
edover
headat
year-endi ndi
catethatkalit
yst
eelaccountant
smadea
seri
ouser ror?Bri
efl
yex plai
n.

ByKI
NDYEM. Jobcosti
nfor
mat
ion
Pr
oject5
5.ZCompanyusesaj ob-ordercostingsystem andappl i
esoverhead
basedon
dir
ectmat er
ialsusedinproduction.Forther ecentyeari
testi
mat edthat
$150,000ofmanuf acturi
ngov erheadwillbei ncurr
edand$100,000of
dir
ect
material
swillbeused.Thef oll
owingdatawer etakenfr
omthe
company ’
s
books:
Beginning Endi
ng
RawMat eri
als(al
ldirect) $50,000
$20,000
Wor kinProcess $60,000
$45,000
Fini
shedGoods $30,000
$15,000

Costsincur
reddur
ingtheyear
:
Purchasesofrawmateri
als(
dir
ect
) $100,
000
Di
rectLabor $50,
000
Actualover
head $170,
000
Requi
red
1.Deter
minet
heamountofmanuf actur
ingov erheadappl
iedtoWor kinProcess?
2.Deter
minet
heamountofcostofgoodsmanuf act
uredduri
ngthey ear
?
3.Deter
minet
heunderoroverappli
edov erhead?
4.Deter
minet
hecostofgoodssold(includinganyunderorov erappli
edoverhead)
?

ByKI
NDYEM. Jobcosti
nfor
mat
ion
Project6
6.Acl othi ngmanuf act urerhadt hef ollowingt r
ansact i
onsi nitsf i
rst
mont hofoper ationsr el atingt oi t
sonl yj ob, Job#101.
a.Pur chased500y ar dsofsi lk@ $8pery ardf orcash.
b.Requi siti
oned300y ardsofsi lktopr oduceJob#101.
c.Incur red50hour sofdi rectl abort opr oduceJob#101; theav eragelaborrat
e
is$9perhour .
d.Pai dv ariousf act oryov erheadcost s, $650.
e.Appl iedf actor yov er headatt her ateof150%ofdi r ectlaborcost stoJob#101.
f.Compl etedJob#101.
g.Sol dJob#101, recei v i
ngcashof$4, 400.
I
NSTRUCTI ONS
1.Ent ert hetransact ionsi nt heT-account sbel ow.Assumet heopeni ngbalance
ofCashi s$9,000.
2.Det ermi net heendi ngbal anceofeachaccount ?
3.Whatwast hegr osspr ofitear nedonJob#101?
4.Whatwast hegr ossmar ginr atioear nedonJob#101?
5.Isf act oryov erappl i
edorunderappl ied, andbyhowmuch?
Project7
7.Abcmanuf acturingPLCpr oducedweat herv anes.Fort hemont hJan
2012j ustendedabcpr oduced11, 000weat herv aneswi ththef ol
lowing
totalcost
Directmat er i
al...
....
...
....
.....
..
....
...
...
...
..
...
...
....
...
..
..bi r
r15, 000
Directl abor. ..
...
..
....
...
....
.....
..
....
...
...
...
..
...
...
....
..
...
,bi rr35, 000
Ov erhead. .
....
..
..
.....
...
...
.....
...
...
...
...
...
...
..
....
...
...
...
.bi rr10, 000
Sel l
ingexpense. ..
....
...
....
....
...
...
...
...
....
..
...
...
....
..
...
..
bi rr6,250
Admi nist rativeexpense. ...
...
...
...
...
...
....
..
...
..
.....
...
..
birr14, 400
Duringt hey earabccompanysol d9,700uni tsofweat herv anatbi rr13each.Bi ngi
ng
fi
nishedgoodsi nvent oryconsi stedof630uni tswhi cht otalcostofbi rr4095.There
werenobi ngi ngorendi ngi nv entor yofwor kinpr ocess( WI P).
Required
Task7. 1cal cul at
euni tcostoft hef oll
owi ng
A.Di rectmat erialcost
B.Di rectl aborcost
C.Ov er headcost
D.pr imecost
E.conv ersioncost
Task7. 2pr epar eschedul esf orcostofgoodsmanuf actur ed
Task7. 3pr epar eschedul esf orcostofgoodssol
Task7. 4pr epar eincomest atementf orabcmanuf act uri
ngcompany

ByKI
NDYEM. Jobcosti
nfor
mat
ion
Pr
oject8
8.Entotomanuf actur
ingcompanyusesaj obor dercostaccounti
ng
system,nor malcosti
ngsy st
em andperpetuali
nventorysystem f
orits
accountingrecords.I
nformationonthecompany ’sproduct
ionactiv
iti
es
duringcurrentaccounti
ngper i
odgivenasfoll
ows.
1.Begi nningfini
shedgoodsi nvent
oryfortheperiod(job10),br
.55000

2.Begi
nni
ngwor
kinpr
ocessf
ort
heper
iod,
br.35000

3.Pur
chasedr
awmat
eri
alf
orcash,
br.
64000

4.Mater
ial
srequi
sit
ionsr
ecor
dshowsusedoft
hef
oll
owi
ngdi
rectmat
eri
alf
ort
he
per
iod

Job13………………………………………………………………br.40,000
Job14…………………………………………………………………32, 000
Job15……………………………..………………………………….
19,100
Job16………………………………………………………………..
22,400

5.Ti
met
icket
srecor
dshowsuseoft
hef
oll
owi
ngdi
rectl
aborcostf
ort
heper
iod

Job13……………….………………………………. …….br.12,500
Job14…………………….…………………………………10, 500
Job15……………………………………………………. .
..
..37,500
Job16………………………………………………………. .39,000
6.Thecompanyestimatedf
act
oryov
erheadof65%ofdi
rectl aborcostdur
ingt
he
product
ion.

7.Tr
ansf
err
edj
obs13,
14,
and15t
oFi
nishedGoodsdur
ingt
heper
iod

8.Sol
dJobs10.Job13and14oncr
edi
tatat
otalpr
iceofbr
.420,
000

Pr
oject9&10

9.Whati
sthediff
erencebet
weenGAAPandIFRS?Discussbri
efl
ywit
hexample?
10.
Whatunderandoverappl
iedmeansandgi
veanyofyouranswerwi
thexample?

ByKI
NDYEM. Jobcosti
nfor
mat
ion
ByKI
NDYEM. Jobcosti
nfor
mat
ion