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Denice Co. uses job order cost accumulation and applies overhead based on direct labor hours. Any underapplied or overapplied overhear is adjusted directly to Cost of Goods Sold at the end of each month. On April 1, job cost sheets indicated the following: Direct materials Direct labor Applied overhead Total Cost Job status Job 201 Job 202 P2,000 1,500 1,200 Job 203 P1,480 1,000 Job 204 P2,000 1,200 P3.500 2,700 2,100 800 00 P8,450 Finished In P4,700 P3,280 In P4,160 In process process process On April 30, finished goods contained only Jobs 204 and 207, which had the following total costs. Job 204 P2,970 2,200 1,700 Job 207 Direct materials Direct labor Applied overhead | Total cost P2,450 1.000 1,520 P6,930 P5.870 Besides working on Jobs 204 and 207 in April, Denice continued work on Jobs 202 and 203 and started on Jobs 205 and 206. A summary of direct materials used, and direct labor hours worked on Jobs 202, 203, 205, and 200 during April showed the following: Job Job 203 P555 Job Job 206 Direct materials Direct labor hours 202 P1,250 100 205 P2,500 105 P1,080 75 50 Other information: a.) On April 30, the only jobs still in process were 203 and 200. b.) All workers are paid P20 per hour. Wage rates have been stable throughout the year. c.) Denice maintains only one raw materials account (Materials Control) from which it issued both direct and indirect materials. The balance in this account was P2,750 on April 1. d.) All sales are billed on account at 150% of total cost. e.) Other items in April: Depreciation on factory equipment Raw materials purchased Indirect labor Factory rent and utilities Indirect materials used P1,375 11,500 2.500 2.700 2,700

Denice Co. uses job order cost accumulation and applies overhead based on direct labor hours. Any underapplied or overapplied overhear is adjusted directly to Cost of Goods Sold at the end of each month. On April 1, job cost sheets indicated the following: Direct materials Direct labor Applied overhead Total Cost Job status Job 201 Job 202 P2,000 1,500 1,200 Job 203 P1,480 1,000 Job 204 P2,000 1,200 P3.500 2,700 2,100 800 00 P8,450 Finished In P4,700 P3,280 In P4,160 In process process process On April 30, finished goods contained only Jobs 204 and 207, which had the following total costs. Job 204 P2,970 2,200 1,700 Job 207 Direct materials Direct labor Applied overhead | Total cost P2,450 1.000 1,520 P6,930 P5.870 Besides working on Jobs 204 and 207 in April, Denice continued work on Jobs 202 and 203 and started on Jobs 205 and 206. A summary of direct materials used, and direct labor hours worked on Jobs 202, 203, 205, and 200 during April showed the following: Job Job 203 P555 Job Job 206 Direct materials Direct labor hours 202 P1,250 100 205 P2,500 105 P1,080 75 50 Other information: a.) On April 30, the only jobs still in process were 203 and 200. b.) All workers are paid P20 per hour. Wage rates have been stable throughout the year. c.) Denice maintains only one raw materials account (Materials Control) from which it issued both direct and indirect materials. The balance in this account was P2,750 on April 1. d.) All sales are billed on account at 150% of total cost. e.) Other items in April: Depreciation on factory equipment Raw materials purchased Indirect labor Factory rent and utilities Indirect materials used P1,375 11,500 2.500 2.700 2,700

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 21E: Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the...
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Kindly supply what was asked:

a) Materials control at the end of April

b) Work-in Process Balance at the end of April

c) Cost of Goods Manufactured at the end of april

d) Over-or underapplied overhead

e) Gross profit/loss for April

Additional: Provide necessary journal entries and financial statements.

 

 

PROBLEM 1 Denice Co. uses job order cost accumulation and applies overhead based on direct labor hours. Any underapplied or overapplied overhear is adjusted directly to Cost of Goods Sold at the end of each month. On April 1, job cost sheets indicated the following: Job 201 Job 202 P2,000 1,500 Job 203 Job 204 Direct materials P3,590 P1,480 1,000 P2,000 1,200 960 Direct labor 2,700 Applied overhead Total Cost Job status 2,180 1,200 800 P8,450 Finished In P3,280 In P4,160 In P4,700 process process process On April 30, finished goods contained only Jobs 204 and 207, which had the following total costs. Job Job 204 207 P2,970 Direct materials Direct labor Applied overhead Total cost P2,450 1,900 2,200 1,760 1,520 P6.930 P5.870 Besides working on Jobs 204 and 207 in April, Denice continued work on Jobs 202 and 203 and started on Jobs 205 and 206. A summary of direct materials used, and direct labor hours worked on Jobs 202, 203, 205, and 208 during April showed the following: Job Job Job Job 202 203 205 206 Direct materials P1,250 P555 P2,500 105 P1,980 Direct labor 100 75 50 hours Other information: a.) On April 30. the only jobs still in process were 203 and 208. b.) All workers are paid P20 per hour. Wage rates have been stable throughout the year. c.) Denice maintains only one raw materials account (Materials Control) from which it issued both direct and indirect materials. The balance in this account was P2,750 on April 1. d.) All sales are billed on account at 150% of total cost. e.) Other items in April: P1,375 Depreciation on factory equipment Raw materials purchased 11,500 2,500 Indirect labor Factory rent and utilities Indirect materials used 2,700 2.790
Transcribed Image Text:PROBLEM 1 Denice Co. uses job order cost accumulation and applies overhead based on direct labor hours. Any underapplied or overapplied overhear is adjusted directly to Cost of Goods Sold at the end of each month. On April 1, job cost sheets indicated the following: Job 201 Job 202 P2,000 1,500 Job 203 Job 204 Direct materials P3,590 P1,480 1,000 P2,000 1,200 960 Direct labor 2,700 Applied overhead Total Cost Job status 2,180 1,200 800 P8,450 Finished In P3,280 In P4,160 In P4,700 process process process On April 30, finished goods contained only Jobs 204 and 207, which had the following total costs. Job Job 204 207 P2,970 Direct materials Direct labor Applied overhead Total cost P2,450 1,900 2,200 1,760 1,520 P6.930 P5.870 Besides working on Jobs 204 and 207 in April, Denice continued work on Jobs 202 and 203 and started on Jobs 205 and 206. A summary of direct materials used, and direct labor hours worked on Jobs 202, 203, 205, and 208 during April showed the following: Job Job Job Job 202 203 205 206 Direct materials P1,250 P555 P2,500 105 P1,980 Direct labor 100 75 50 hours Other information: a.) On April 30. the only jobs still in process were 203 and 208. b.) All workers are paid P20 per hour. Wage rates have been stable throughout the year. c.) Denice maintains only one raw materials account (Materials Control) from which it issued both direct and indirect materials. The balance in this account was P2,750 on April 1. d.) All sales are billed on account at 150% of total cost. e.) Other items in April: P1,375 Depreciation on factory equipment Raw materials purchased 11,500 2,500 Indirect labor Factory rent and utilities Indirect materials used 2,700 2.790
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