Project One processes jobs

ABC manufacturing (plc) produced weather vanes, for the month of Jan 2010 just ended ABC
produced 10,000 Weather Vanes with the following total costs
Direct labor cost ----------------------birr 20,000
Direct material --------------------------------35,000
Overhead -----------------------------------------10,000
Selling expenses----------------------------------6,250
Admin expenses----------------------------------14,400
During the year ABC Company sold 9,800 unit of weather van at birr 12 each. Beginning finished
goods inventory consisted of 630 units which total cost of birr 4095 there were no binning or
ending inventory of work in process (WIP)
Required
Task 2.1. Calculate unit cost
a) Direct material cost
b) Direct labor cost
c) Overhead cost
d) Cost prime
e) Conversion cost
Task 2.2. Prepare schedules cost of goods manufactured
Task 2.3. Prepare schedules cost of goods sold
Task 2.4. Prepare income statement ABC manufacturing
Project Two
Ministry of education award medals for outstanding students. The manufacturing department
have capacity to produced 10,000 medals per month and these birr 150/medals it’s currently
produces medals per month 7,500 medals with cost the information given below
Direct material 270,000.00
Direct Labor 400,000.00
Factory overhead (variable) 80,000.00
Fixed manufacturing cost 300,000.00
Fixed marketing cost 200,000.00
Do provide a special onetime order 2,000 medals at birr 99 per medals. It’s doesn’t direct normal
operation of ministry of education.
Required
Task 3.1. Should ministry of education accept the special order? Explain your decision in detail
with the numerical justification
Project Three
3 F uses a job costing system. The following data summarized the operation September 2011
a. Material purchased on account birr 96,300
b. Material and labor used
Job No Material Labor
Job 1 10,000.00 5,000.00
Job 2 8,000.00 7,000.00
Job 3 10,000.00 5,000.00
 c. Factory overhead cost (fixed) incurred birr 26,300.00
d. Deprecation of machinery birr 6,000.00
e. Factory overhead cost (variable is 60% of direct labor cost)
f. Job 1,2, and 3 were completed and shipped on account to customer
Required
Task 2.1. Calculate cost of goods manufactured
Task 2.2. Calculate prime costs.
Task 2.3. Calculate direct labor costs, if the factory overhead (variable) increased by 10%
Project-Four
Entoto manufacturing company uses a job order costing system, normal costing system and
perpetual inventory system for its accounting records. Information on the company’s production
activities during current accounting period given as follows.
1. Beginning finished goods inventory for the period (Job 10), br. 45,000.
2. Beginning working process for the period, br. 30,000.
3. Purchased raw materials for cash, br. 60,000
4. Materials requisition record shows use of the following direct materials for
the period.
Job 13------------------------br. 48,000
Job 14------------------------ 32,000
Job 15------------------------ 19,200
Job 16------------------------ 22,400
5. Time tickets record shows use of the following direct labor cost for the
period.
Job 13-------------------------12,000
Job 14------------------------- 10,500
Job 15--------------------------37,500
Job 16--------------------------39,000
6. The company estimated factory overhead of 70% of direct labor cost
during the production.
7. Transferred Job 13, 14 and 15 to finished goods during the period
8. Sold Job 10, 13 and 14 on credit at a total price of br. 420,000
Required
Task 2.1. Determine amount of ending work in process inventory and ending finished
goods inventory for the period.
Task 2.2. Calculate cost of goods manufactured.
Task 2.3. Calculate cost of goods sold.
Task 2.4. Record Journal entries related to the above transactions.
Task 2.5. Calculate gross profit for the period.
Project Five
During the month of January, the following transactions, will occur to produce three products
A) raw material purchase on account
Lime stone -----------------------------------300
Sand--------------------------------------------900
Cement powders (chemicals) -------------5,400
B) material issued and direct factory labor cost used
 Material Direct labor
Job no 327 170
Job no 870 240
Job no 3,920 195
C) Factory overhead is 70% of direct labor
D) All goods already produced are sold, the finished products sold for cash of birr 8,700
Instructions
Task 2.1 Record the necessary journal entry for each job transactions
Task 2.2 calculate the cost of each job
Task 2.3 calculate total amount of gross profit