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Job Order Costing Practice Problems p1 Continuation

The document presents multiple job order costing problems involving three companies: Carter Marketing Corporation, Absolute Company, and Sharron Company. It includes calculations for total manufacturing costs, gross profit, work in process, cost of goods sold, and total costs for specific jobs based on direct materials, labor, and overhead rates. Additionally, it provides details on how overhead is applied in different production departments.

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Roa, Mary Margarette M. 玛丽
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60 views2 pages

Job Order Costing Practice Problems p1 Continuation

The document presents multiple job order costing problems involving three companies: Carter Marketing Corporation, Absolute Company, and Sharron Company. It includes calculations for total manufacturing costs, gross profit, work in process, cost of goods sold, and total costs for specific jobs based on direct materials, labor, and overhead rates. Additionally, it provides details on how overhead is applied in different production departments.

Uploaded by

Roa, Mary Margarette M. 玛丽
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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JOB ORDER COSTING – PART 1 (CONTINUATION)

Problem 5:

Carter Marketing Corporation uses job order costing system. It has three production departments, X,
Y, and Z. The manufacturing budget cost for 20x8 is as follows:

Department X Department Y Department Z


Direct materials P 600,000 P 400,000 P200,000
Direct labor 200,000 500,000 400,000
Manufacturing overhead 600,000 100,000 200,000

For Job 01 completed in 2021, direct materials cost was P75,000; direct labor, Department X,
P40,000, Department Y, P100,000, and Department Z, P20,000. The corporation applies
manufacturing overhead to each job on the basis of direct labor cost using departmental rates
predetermined at the beginning of the year based on the manufacturing overhead budget cost. The
total manufacturing cost of Job 01 is?

Problem 6:

Absolute Company started 6 jobs in the current month and had the following information:
Job# Direct Materials Direct Labor Costs Machine hours
2001 ₱ 1,200 ₱ 800 50
2002 ₱ 1,800 ₱ 1,100 180
2003 ₱ 1,300 ₱ 950 75
2004 ₱ 1,450 ₱ 1,025 80
2005 ₱ 1,370 ₱ 990 60
2006 ₱ 1,650 ₱ 1,075 175

Absolute applies manufacturing overhead to each job on the basis of budgeted machine hours of
5,000 hours based on the predetermined budgeted overhead of P42,500. By the end of the current
month, only Jobs 2003, 2005, and 2006 were completed and directly billed to the customers at 30%
of cost.

a. How much is the gross profit recognized by Absolute at the end of the current month?
b. How much is the work in process as of the end of the current month?

Problem 7:

The following data were taken from the records of Sharron Company:

March 1, 20x8 March 31, 20x8


Inventories:
Direct Materials P? P 100,000
Work in process 160,000 190,000
Finished goods 120,000 156,000

Materials purchases, P92,000.


Factory overhead, 75% of direct labor cost, P126,000.
Operating expenses, 12.5% of sales, P50,000.
Net income for the month, P50,000.

a. How much is the cost of goods sold for the month?


b. How much is the direct materials on March 1, 20x8?

Problem 8:
Products at Red Manufacturing are sent through two production departments: Fabricating and
Finishing. Overhead is applied to products in the Fabricating Department based on 150 percent of
direct labor cost and P18 per machine hour in Finishing. The following information is available about
Job #297:

Fabricating Finishing
Direct materials ₱ 31,800 ₱ 11,600
Direct labor cost ₱? ₱ 960
Direct labor hours 400 120
Machine hours 100 300
Overhead applied ₱ 8,580 ₱?

What is the total cost of Job#297?

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