Richards Company employs a job order costing system. Only three jobs- Job #205, Job #206, and Job #207-were worked on during January and February. Job #205 was completed February 10; the other two jobs were still in production on February 28, the end of the company's operating year. Job cost sheets on the three jobs follow: Job Cost Sheet Job #205 Job #206 Job #207 January costs incurred: Direct material P16.500 P 9,300 P - Direct labor 13.000 7,000 P - Manufacturing overhead 20.800 11,200 P- February costs incurred: Direct materials 8.200 21,300 Direct labor 4.000 6,000 10.000 Manufacturing overhead ? ? ? The following additional information is available: a. Manufacturing overhead is assigned to jobs on the basis of direct labor cost. b. Balances in the inventory accounts at January 31 were as follows: Raw Material P40,000 Work in Process ? Finished Goods 85.000 Q: How much is the balance of Work In Process as of Jan 31?
Richards Company employs a job order costing system. Only three jobs- Job #205, Job #206, and Job #207-were worked on during January and February. Job #205 was completed February 10; the other two jobs were still in production on February 28, the end of the company's operating year. Job cost sheets on the three jobs follow: Job Cost Sheet Job #205 Job #206 Job #207 January costs incurred: Direct material P16.500 P 9,300 P - Direct labor 13.000 7,000 P - Manufacturing overhead 20.800 11,200 P- February costs incurred: Direct materials 8.200 21,300 Direct labor 4.000 6,000 10.000 Manufacturing overhead ? ? ? The following additional information is available: a. Manufacturing overhead is assigned to jobs on the basis of direct labor cost. b. Balances in the inventory accounts at January 31 were as follows: Raw Material P40,000 Work in Process ? Finished Goods 85.000 Q: How much is the balance of Work In Process as of Jan 31?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 5BE: Job costs At the end of May, Bergan Company had completed Jobs 200 and 305. Job 200 is for 2,390...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Richards Company employs a job order costing system. Only three jobs- Job #205, Job #206, and Job #207-were worked on during January and February. Job #205 was completed February 10; the other two jobs were still in production on February 28, the end of the company's operating
year. Job cost sheets on the three jobs follow:
Job Cost Sheet
Job #205 Job #206 Job #207
January costs incurred:
Direct material
P16.500
P 9,300
P -
Direct labor
13.000
7,000
P -
Manufacturing overhead
20.800
11,200
P-
February costs incurred:
Direct materials
8.200
21,300
Direct labor
4.000
6,000
10.000
Manufacturing overhead
?
?
?
The following additional information is available:
a.
Manufacturing overhead is assigned to jobs on the basis of direct
labor cost.
b. Balances in the inventory accounts at January 31 were as follows:
Raw Material
P40,000
Work in Process
?
Finished Goods
85.000
Q: How much is the balance of Work In Process as of Jan 31?
Transcribed Image Text:tulng ovemeau
The following additional information is available:
Manufacturing overhead is assigned to jobs on the basis of direct
а.
labor cost.
b. Balances in the inventory accounts at January 31 were as follows:
Raw Material
P40,000
Work in Process
Finished Goods
85,000
Q: How much is the balance of Work In Process as of Jan 31?
Transcribed Image Text:Richards Company employs a job order costing system. Only three jobs-
Job #205, Job #206, and Job #207-were worked on during January and
February. Job #205 was completed February 10; the other two jobs were
still in production on February 28, the end of the company's operating
year. Job cost sheets on the three jobs follow:
Job Cost Sheet
Job #205
Job #206 Job #207
January costs incurred:
Direct material
P16,500
P 9,300
P -
Direct labor
13,000
7,000
Manufacturing overhead
20,800
11,200
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