AKUNTANSI MANAJEMEN OPENCOURSEWARE UNIVERSITAS PEMBANGUNAN JAYA ch5 Slide ACC204 ch5
5 -1
CHAPTER
Job-Order
Costing
5 -2
Objectives
Objectives
1. Describe the differences between job-order
After
studying
this
After
studying
thisidentify the types
costing and process costing, and
chapter,
you
should
chapter,
you
of firms that would use eachshould
method.
be
able
to:
to:documents used in
2. Identify and set upbe
theable
source
job-order costing.
3. Describe the cost flows associated with job-order
costing.
4. Appendix: Prepare the journal entries associated
with job-order costing.
5 -3
Comparison of Job-Order and
Process Costing
Process
Process or
or jobjoborder
order costing?
costing?
5 -4
Characteristics
Characteristics of
of Job-Order
Job-Order Costing
Costing
Wide-variety of services
or products that are quite
distinct from each other
Cost accumulated by job
Unit cost computed by
dividing total job costs
by units produced on that
job
BEAT
SOUTH
HIGH
5 -5
Characteristics
Characteristics of
of Process
Process Costing
Costing
Produce large quantities of
similar or homogeneous
products
Cost accumulated by process or
department for a given period
of time
Unit cost computed by dividing
process costs of period by the
units produced in the period
5 -6
Process
Process or
or
job-order
job-order
costing?
costing?
Exxon oil refinery
Process
Coca Cola plant
Process
Custom home builder Job order
Shop for customizing vans Job order
Television repair shop
Job order
Campbell soup plant Process
Advertising agency
Law firm
Job order
Job order
5 -7
Job-Order
Job-Order Costing
Costing
Job 425
Job 426
Job 427
Total
Beginning balance $58,600 $51,300 $
0 $109,900
Current costs:
Direct materials
4,800 3,600 23,500 31,900
Direct labor
6,000 9,000 10,000 25,000
Applied overhead 2,400 3,600
4,000 10,000
Total
$71,800 $67,500 $37,500 $176,800
This information is used to determine the total
cost of goods manufactured.
5 -8
Johnson
Johnson Leathergoods
Leathergoods
5 -9
Job-Order
Job-Order Cost
Cost Sheet
Sheet
Job Cost Sheet
Direct Materials
July 1
100 lbs. @ $ 0.25 = $ 25
3
75 oz. @ $1.40 = 105
July 1
3 hrs. @ $10.00 = $ 30
Direct Labor
3
7 hrs @ $10.00 =
70
Factory Overhead
July 7 10 dlh x $2
=
$ 20
A
Ajob-cost
job-cost sheet
sheet isis aa
document
document used
used to
to
accumulate
accumulate the
the cost
cost for
for
aa specific
specific job
job in
in aa jobjobcost
cost system
system
5 -10
Johnson
Johnson Leathergoods
Leathergoods
Unit Cost
Direct materials
Direct labor
$1,000
1,080
Applied Overhead
240
Total cost
$2,320
number of units
Unit cost
20
$ 116
5 -11
Johnson
Johnson Leathergoods
Leathergoods
Date
Department
Job
Description
Buckles
Material Requisition
Number 12
January 11, 2004
Assembly
Briefcase
Quantity
Cost/Unit
Total Cost
$30
$300
10
Authorized Signature
Jim Lawson
Material
MaterialRequisition
RequisitionForm
Form
5 -12
Johnson
Johnson Leathergoods
Leathergoods
Employee Number 4
Name
Ed Wilson
Date
January 12, 2003
Job Time Ticket
Number 8
Start Time Stop Time Total Time Hourly Rate Amount
Job Number
8:00
10:00
11:00
1:00
Backpacks
Briefcases
Backpacks
Backpacks
10:00
11:00
12:00
5:00
Authorized Signature
2
1
1
4
$9
9
9
9
Jim Lawson
Department Supervisor
Job
JobTime
TimeTicket
Ticket
$18
9
9
36
5 -13
Through the Accounts
Johnson
Johnson Leathergoods
Leathergoods
5 -14
Summary
Summary of
of Materials
Materials Cost
Cost Flows
Flows
Materials Account
Beginning balance
Purchases
Direct material used
Ending balance
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$0
2,500
1,500
1,000
1,000
20
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$500
10
5 -15
Summary
Summary of
of Direct
Direct Labor
Labor Cost
Cost Flows
Flows
Wages Payable
Direct hours
x wage rate
Total direct labor
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
170
x $9
$ 1,530
$ 1,000
1,080
20
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$ 500
450
10
Accounting for Overhead
Actual
Actual overhead
overhead costs
costs are
are never
never
assigned
assigned directly
directly to
to jobs.
jobs.
Overhead
Overhead isis applied
applied using
using aa
predetermined
predetermined overhead
overhead rate.
rate.
$9,600
Estimated
Overhead
Overhead rate =
Estimated
4,800Direct
Labor Hours
= $2 per direct labor hour
Functional Approach
5 -16
Accounting for Overhead—Using ABC
Estimated Overhead ($)
for Each Driver
Expected Demand for
Each Driver
Purchasing
$3,000 Purchase orders
100
Machining
4,200 Machine hours
2,800
Other
2,400 Direct labor hours
4,800
$3,000 ÷ 100 = $30 per purchase order
$4,200 ÷ 2,800 = $1.50 per machine hour
$2,400 ÷ 4,800 = $0.50 per direct labor hour
5 -17
Accounting for Overhead—Using ABC
Backpacks:
Purchase orders
Machine hours
Direct labor hours
3
60
120
Briefcases:
Purchase orders
Machine hours
Direct labor hours
1
30
50
5 -18
Accounting for Overhead—Using ABC
Purchasing:
3 orders x $30
1 order x $30
Machining:
60 hours x $1.50
30 hours x $1.50
Other:
120 DLH x $0.50
50 DLH x $0.50
Total overhead applied
$ 90
$30
90
45
60
$240
25
$100
5 -19
Summary
Summary of
of Overhead
Overhead Cost
Cost Flows
Flows
5 -20
Actual Overhead
Lease
$200
Utilities
50
Equipment depreciation
100
Indirect labor
65
Total actual overhead
$415
Applied Overhead
Direct labor hours
170
Overhead rate
x $2
Total applied overhead $340
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
$1,000
Direct labor
1,080
Overhead applied
240
Total cost
Number of units
120 x $2
Unit cost
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
$500
Direct labor
450
Overhead applied
100
Total cost
Number of units
50 x $2
Unit cost
Summary
Summary of
of Overhead
Overhead Cost
Cost Flows
Flows
Actual Overhead
Lease
Utilities
Equipment depreciation
Indirect labor
Total actual overhead
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$200
50
100
65
$415
$1,000
1,080
240
20
Applied Overhead
Direct labor hours
Overhead rate
Total applied overhead
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
5 -21
$170
x $2
$340
$500
450
100
10
5 -22
Summary
Summary of
of Finished
Finished Goods
Goods Cost
Cost Flows
Flows
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$1,000
1080
240
$2,320
20
$116
Finished Goods Account
Backpacks
$2,320
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$500
450
100
$1,050
Johnson Leathergoods
Schedule of Cost of Goods Manufactured
For the Month Ended January 31, 2004
Direct materials:
Beginning raw materials inventory
$
0
Purchases of raw materials
2,500
Total raw materials available for use
$2,500
Ending raw materials
1,000
Total raw materials used
Direct labor
Overhead:
Lease
$ 200
Utilities
50
Depreciation
100
Indirect labor
65
$ 415
Continued
Continued
5 -23
$1,500
1,530
5 -24
Less: Underapplied overhead
Overhead applied
Current manufacturing costs
Add: Beginning work in process
Total manufacturing cost
Less: Ending work in process
Cost of goods manufactured
$ 415
75
340
$3,370
0
$3,370
1,050
$2,320
5 -25
Statement of Cost of Goods Sold
Beginning finished goods inventory
Cost of goods manufactured
Cost of goods available for sale
Less: Ending finished goods inventory
Normal cost of goods sold
Add: Underapplied overhead
Adjusted cost of goods sold
$
0
2,320
$2,320
0
$2,320
75
$2,395
5 -26
Johnson Leathergoods
Income Statement
For the Month Ended January 31, 2004
Sales
Cost of goods sold
Gross margin
Less selling and administrative expenses:
Selling expenses
Administrative expenses
Net operating income
$3,480
2,395
$1,085
$200
550
750
$ 335
5 -27
Journal Entries
Associated With JobOrder Costing
Johnson
Johnson Leathergoods
Leathergoods
5 -28
Johnson
Johnson Leathergoods
Leathergoods
1 Materials
2 500 00
The receiving report and the invoice are
Accounts Payable
used to record the receipt of the
merchandise and to control the payment.
1. Materials costing $2,500 were
purchased on account.
2 500 00
5 -29
Johnson
Johnson Leathergoods
Leathergoods
2
Work in Process
1 500 00
The receiving report and the invoice are
Materials
used to record the receipt of the
merchandise and to control the payment.
2. Materials costing $1,500 were
requisitioned for use in production.
1 500 00
5 -30
Johnson
Johnson Leathergoods
Leathergoods
3 Work in Process
1 530 00
The receiving report and the invoice are
Wages Payable
used to record the receipt of the
merchandise and to control the payment.
3. Direct labor costing $1,530 was
recognized.
1 530 00
5 -31
Johnson
Johnson Leathergoods
Leathergoods
4 Work in Process
340 00
The receiving report and the invoice are
Overhead Control
used to record the receipt of the
merchandise and to control the payment.
340 00
4. Overhead was applied to production at the
rate of $2 per direct labor hour. A total of
170 direct labor hours were worked.
5 -32
Johnson
Johnson Leathergoods
Leathergoods
5 Overhead Control
415 00
The receiving report and the invoice are
Lease Payable
used to record the receipt of the
Utilities Payableand to control the payment.
merchandise
Accumulated Depreciation
Wages Payable
5. Actual overhead costs of $415 were
incurred: lease, $200; utilities, $50;
depreciation, $100; accrued wages, $65.
200 00
50 00
100 00
65 00
5 -33
Johnson
Johnson Leathergoods
Leathergoods
6 Finished Goods
2 320 00
The receiving report and the invoice are
Work in Process
used to record the receipt of the
merchandise and to control the payment.
2 320 00
6. The backpacks were completed and transferred
to finished goods.
5 -34
Johnson
Johnson Leathergoods
Leathergoods
7 Cost of Goods Sold
2 320 00
The receiving report and the invoice are
Finished Goods
used to record the receipt of the
merchandise and to control the payment.
7 Accounts Receivable
2 320 00
3 480 00
Sales Revenue
7. The backpacks were sold at
cost plus 50 percent.
3 480 00
5 -35
Johnson
Johnson Leathergoods
Leathergoods
8 Cost of Goods Sold
75 00
The receiving report and the invoice are
Overhead Control
used to record the receipt of the
merchandise and to control the payment.
8. Underapplied overhead was closed to cost of
goods sold.
75 00
5 -36
Johnson
Johnson Leathergoods
Leathergoods
Materials
(1)
2,500
(1) Purchased of materials
5 -37
Johnson
Johnson Leathergoods
Leathergoods
Materials
(1) 2,500 (2) 1,500
(2) Issue of materials
Work in Process
(2)
1,500
5 -38
Johnson
Johnson Leathergoods
Leathergoods
Work in Process
Wages Payable
(2) 1,500
(3) 1,530
(3) Incurrence of direct labor cost
(3) 1,530
5 -39
Johnson
Johnson Leathergoods
Leathergoods
Work in Process
(2) 1,500
(3) 1,530
(4)
340
Overhead Control
(4)
340
(4) Estimated overhead applied to Work in
Process
5 -40
Johnson
Johnson Leathergoods
Leathergoods
Overhead Control
Work in Process
(2) 1,500
(3) 1,530
(4) 340
(5)
(5) Actual overhead recorded
415 (4)
340
5 -41
Johnson
Johnson Leathergoods
Leathergoods
Finished Goods
Work in Process
(2) 1,500 (6)
(3) 1,530
(4) 340
2,320
(6)
2,320
(6) Transfer of Job 1 to finished goods
5 -42
Johnson
Johnson Leathergoods
Leathergoods
Finished Goods
(6)
2,320 (7)
2,320
Accounts Receivable
(7)
Cost of Goods Sold
(6)
2,320
Sales Revenue
3,480
(7) Cost of goods sold for Job 1 and
revenue from sale on account
(7)
3,480
5 -43
Johnson
Johnson Leathergoods
Leathergoods
Overhead Control
(5)
415
(4)
(8)
340
75
Cost of Goods Sold
(7)
(8)
2,320
75
(8) Underapplied overhead closed
5 -44
Chapter Five
The
The End
End
5 -45
CHAPTER
Job-Order
Costing
5 -2
Objectives
Objectives
1. Describe the differences between job-order
After
studying
this
After
studying
thisidentify the types
costing and process costing, and
chapter,
you
should
chapter,
you
of firms that would use eachshould
method.
be
able
to:
to:documents used in
2. Identify and set upbe
theable
source
job-order costing.
3. Describe the cost flows associated with job-order
costing.
4. Appendix: Prepare the journal entries associated
with job-order costing.
5 -3
Comparison of Job-Order and
Process Costing
Process
Process or
or jobjoborder
order costing?
costing?
5 -4
Characteristics
Characteristics of
of Job-Order
Job-Order Costing
Costing
Wide-variety of services
or products that are quite
distinct from each other
Cost accumulated by job
Unit cost computed by
dividing total job costs
by units produced on that
job
BEAT
SOUTH
HIGH
5 -5
Characteristics
Characteristics of
of Process
Process Costing
Costing
Produce large quantities of
similar or homogeneous
products
Cost accumulated by process or
department for a given period
of time
Unit cost computed by dividing
process costs of period by the
units produced in the period
5 -6
Process
Process or
or
job-order
job-order
costing?
costing?
Exxon oil refinery
Process
Coca Cola plant
Process
Custom home builder Job order
Shop for customizing vans Job order
Television repair shop
Job order
Campbell soup plant Process
Advertising agency
Law firm
Job order
Job order
5 -7
Job-Order
Job-Order Costing
Costing
Job 425
Job 426
Job 427
Total
Beginning balance $58,600 $51,300 $
0 $109,900
Current costs:
Direct materials
4,800 3,600 23,500 31,900
Direct labor
6,000 9,000 10,000 25,000
Applied overhead 2,400 3,600
4,000 10,000
Total
$71,800 $67,500 $37,500 $176,800
This information is used to determine the total
cost of goods manufactured.
5 -8
Johnson
Johnson Leathergoods
Leathergoods
5 -9
Job-Order
Job-Order Cost
Cost Sheet
Sheet
Job Cost Sheet
Direct Materials
July 1
100 lbs. @ $ 0.25 = $ 25
3
75 oz. @ $1.40 = 105
July 1
3 hrs. @ $10.00 = $ 30
Direct Labor
3
7 hrs @ $10.00 =
70
Factory Overhead
July 7 10 dlh x $2
=
$ 20
A
Ajob-cost
job-cost sheet
sheet isis aa
document
document used
used to
to
accumulate
accumulate the
the cost
cost for
for
aa specific
specific job
job in
in aa jobjobcost
cost system
system
5 -10
Johnson
Johnson Leathergoods
Leathergoods
Unit Cost
Direct materials
Direct labor
$1,000
1,080
Applied Overhead
240
Total cost
$2,320
number of units
Unit cost
20
$ 116
5 -11
Johnson
Johnson Leathergoods
Leathergoods
Date
Department
Job
Description
Buckles
Material Requisition
Number 12
January 11, 2004
Assembly
Briefcase
Quantity
Cost/Unit
Total Cost
$30
$300
10
Authorized Signature
Jim Lawson
Material
MaterialRequisition
RequisitionForm
Form
5 -12
Johnson
Johnson Leathergoods
Leathergoods
Employee Number 4
Name
Ed Wilson
Date
January 12, 2003
Job Time Ticket
Number 8
Start Time Stop Time Total Time Hourly Rate Amount
Job Number
8:00
10:00
11:00
1:00
Backpacks
Briefcases
Backpacks
Backpacks
10:00
11:00
12:00
5:00
Authorized Signature
2
1
1
4
$9
9
9
9
Jim Lawson
Department Supervisor
Job
JobTime
TimeTicket
Ticket
$18
9
9
36
5 -13
Through the Accounts
Johnson
Johnson Leathergoods
Leathergoods
5 -14
Summary
Summary of
of Materials
Materials Cost
Cost Flows
Flows
Materials Account
Beginning balance
Purchases
Direct material used
Ending balance
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$0
2,500
1,500
1,000
1,000
20
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$500
10
5 -15
Summary
Summary of
of Direct
Direct Labor
Labor Cost
Cost Flows
Flows
Wages Payable
Direct hours
x wage rate
Total direct labor
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
170
x $9
$ 1,530
$ 1,000
1,080
20
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$ 500
450
10
Accounting for Overhead
Actual
Actual overhead
overhead costs
costs are
are never
never
assigned
assigned directly
directly to
to jobs.
jobs.
Overhead
Overhead isis applied
applied using
using aa
predetermined
predetermined overhead
overhead rate.
rate.
$9,600
Estimated
Overhead
Overhead rate =
Estimated
4,800Direct
Labor Hours
= $2 per direct labor hour
Functional Approach
5 -16
Accounting for Overhead—Using ABC
Estimated Overhead ($)
for Each Driver
Expected Demand for
Each Driver
Purchasing
$3,000 Purchase orders
100
Machining
4,200 Machine hours
2,800
Other
2,400 Direct labor hours
4,800
$3,000 ÷ 100 = $30 per purchase order
$4,200 ÷ 2,800 = $1.50 per machine hour
$2,400 ÷ 4,800 = $0.50 per direct labor hour
5 -17
Accounting for Overhead—Using ABC
Backpacks:
Purchase orders
Machine hours
Direct labor hours
3
60
120
Briefcases:
Purchase orders
Machine hours
Direct labor hours
1
30
50
5 -18
Accounting for Overhead—Using ABC
Purchasing:
3 orders x $30
1 order x $30
Machining:
60 hours x $1.50
30 hours x $1.50
Other:
120 DLH x $0.50
50 DLH x $0.50
Total overhead applied
$ 90
$30
90
45
60
$240
25
$100
5 -19
Summary
Summary of
of Overhead
Overhead Cost
Cost Flows
Flows
5 -20
Actual Overhead
Lease
$200
Utilities
50
Equipment depreciation
100
Indirect labor
65
Total actual overhead
$415
Applied Overhead
Direct labor hours
170
Overhead rate
x $2
Total applied overhead $340
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
$1,000
Direct labor
1,080
Overhead applied
240
Total cost
Number of units
120 x $2
Unit cost
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
$500
Direct labor
450
Overhead applied
100
Total cost
Number of units
50 x $2
Unit cost
Summary
Summary of
of Overhead
Overhead Cost
Cost Flows
Flows
Actual Overhead
Lease
Utilities
Equipment depreciation
Indirect labor
Total actual overhead
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$200
50
100
65
$415
$1,000
1,080
240
20
Applied Overhead
Direct labor hours
Overhead rate
Total applied overhead
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
5 -21
$170
x $2
$340
$500
450
100
10
5 -22
Summary
Summary of
of Finished
Finished Goods
Goods Cost
Cost Flows
Flows
Job Order Cost Sheet
Job: 20 Backpacks
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$1,000
1080
240
$2,320
20
$116
Finished Goods Account
Backpacks
$2,320
Job Order Cost Sheet
Job: 10 Briefcases
Direct materials
Direct labor
Overhead applied
Total cost
Number of units
Unit cost
$500
450
100
$1,050
Johnson Leathergoods
Schedule of Cost of Goods Manufactured
For the Month Ended January 31, 2004
Direct materials:
Beginning raw materials inventory
$
0
Purchases of raw materials
2,500
Total raw materials available for use
$2,500
Ending raw materials
1,000
Total raw materials used
Direct labor
Overhead:
Lease
$ 200
Utilities
50
Depreciation
100
Indirect labor
65
$ 415
Continued
Continued
5 -23
$1,500
1,530
5 -24
Less: Underapplied overhead
Overhead applied
Current manufacturing costs
Add: Beginning work in process
Total manufacturing cost
Less: Ending work in process
Cost of goods manufactured
$ 415
75
340
$3,370
0
$3,370
1,050
$2,320
5 -25
Statement of Cost of Goods Sold
Beginning finished goods inventory
Cost of goods manufactured
Cost of goods available for sale
Less: Ending finished goods inventory
Normal cost of goods sold
Add: Underapplied overhead
Adjusted cost of goods sold
$
0
2,320
$2,320
0
$2,320
75
$2,395
5 -26
Johnson Leathergoods
Income Statement
For the Month Ended January 31, 2004
Sales
Cost of goods sold
Gross margin
Less selling and administrative expenses:
Selling expenses
Administrative expenses
Net operating income
$3,480
2,395
$1,085
$200
550
750
$ 335
5 -27
Journal Entries
Associated With JobOrder Costing
Johnson
Johnson Leathergoods
Leathergoods
5 -28
Johnson
Johnson Leathergoods
Leathergoods
1 Materials
2 500 00
The receiving report and the invoice are
Accounts Payable
used to record the receipt of the
merchandise and to control the payment.
1. Materials costing $2,500 were
purchased on account.
2 500 00
5 -29
Johnson
Johnson Leathergoods
Leathergoods
2
Work in Process
1 500 00
The receiving report and the invoice are
Materials
used to record the receipt of the
merchandise and to control the payment.
2. Materials costing $1,500 were
requisitioned for use in production.
1 500 00
5 -30
Johnson
Johnson Leathergoods
Leathergoods
3 Work in Process
1 530 00
The receiving report and the invoice are
Wages Payable
used to record the receipt of the
merchandise and to control the payment.
3. Direct labor costing $1,530 was
recognized.
1 530 00
5 -31
Johnson
Johnson Leathergoods
Leathergoods
4 Work in Process
340 00
The receiving report and the invoice are
Overhead Control
used to record the receipt of the
merchandise and to control the payment.
340 00
4. Overhead was applied to production at the
rate of $2 per direct labor hour. A total of
170 direct labor hours were worked.
5 -32
Johnson
Johnson Leathergoods
Leathergoods
5 Overhead Control
415 00
The receiving report and the invoice are
Lease Payable
used to record the receipt of the
Utilities Payableand to control the payment.
merchandise
Accumulated Depreciation
Wages Payable
5. Actual overhead costs of $415 were
incurred: lease, $200; utilities, $50;
depreciation, $100; accrued wages, $65.
200 00
50 00
100 00
65 00
5 -33
Johnson
Johnson Leathergoods
Leathergoods
6 Finished Goods
2 320 00
The receiving report and the invoice are
Work in Process
used to record the receipt of the
merchandise and to control the payment.
2 320 00
6. The backpacks were completed and transferred
to finished goods.
5 -34
Johnson
Johnson Leathergoods
Leathergoods
7 Cost of Goods Sold
2 320 00
The receiving report and the invoice are
Finished Goods
used to record the receipt of the
merchandise and to control the payment.
7 Accounts Receivable
2 320 00
3 480 00
Sales Revenue
7. The backpacks were sold at
cost plus 50 percent.
3 480 00
5 -35
Johnson
Johnson Leathergoods
Leathergoods
8 Cost of Goods Sold
75 00
The receiving report and the invoice are
Overhead Control
used to record the receipt of the
merchandise and to control the payment.
8. Underapplied overhead was closed to cost of
goods sold.
75 00
5 -36
Johnson
Johnson Leathergoods
Leathergoods
Materials
(1)
2,500
(1) Purchased of materials
5 -37
Johnson
Johnson Leathergoods
Leathergoods
Materials
(1) 2,500 (2) 1,500
(2) Issue of materials
Work in Process
(2)
1,500
5 -38
Johnson
Johnson Leathergoods
Leathergoods
Work in Process
Wages Payable
(2) 1,500
(3) 1,530
(3) Incurrence of direct labor cost
(3) 1,530
5 -39
Johnson
Johnson Leathergoods
Leathergoods
Work in Process
(2) 1,500
(3) 1,530
(4)
340
Overhead Control
(4)
340
(4) Estimated overhead applied to Work in
Process
5 -40
Johnson
Johnson Leathergoods
Leathergoods
Overhead Control
Work in Process
(2) 1,500
(3) 1,530
(4) 340
(5)
(5) Actual overhead recorded
415 (4)
340
5 -41
Johnson
Johnson Leathergoods
Leathergoods
Finished Goods
Work in Process
(2) 1,500 (6)
(3) 1,530
(4) 340
2,320
(6)
2,320
(6) Transfer of Job 1 to finished goods
5 -42
Johnson
Johnson Leathergoods
Leathergoods
Finished Goods
(6)
2,320 (7)
2,320
Accounts Receivable
(7)
Cost of Goods Sold
(6)
2,320
Sales Revenue
3,480
(7) Cost of goods sold for Job 1 and
revenue from sale on account
(7)
3,480
5 -43
Johnson
Johnson Leathergoods
Leathergoods
Overhead Control
(5)
415
(4)
(8)
340
75
Cost of Goods Sold
(7)
(8)
2,320
75
(8) Underapplied overhead closed
5 -44
Chapter Five
The
The End
End
5 -45