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    Practice Exercise - Job Order Costing

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    Dennis Alea
    Valenko Company provided account balances for the year ended December 31 including $215,000 in selling expenses, $260,000 in raw material purchases, $160,000 in administrative expenses, $340,000 in manufacturing overhead applied to work in process, and $350,000 in total actual manufacturing overhead costs. Inventory balances were provided for raw materials, work in process, and finished goods at the beginning and end of the year. Total manufacturing costs were $675,000, cost of goods available for sale was $720,000, unadjusted cost of goods sold was $665,000, and net operating income was $35,000, with any over or underapplied overhead closed to cost of goods sold.

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    Practice Exercise - Job Order Costing

    Uploaded by

    Dennis Alea
    58 views1 page
    Valenko Company provided account balances for the year ended December 31 including $215,000 in selling expenses, $260,000 in raw material purchases, $160,000 in administrative expenses, $340,000 in manufacturing overhead applied to work in process, and $350,000 in total actual manufacturing overhead costs. Inventory balances were provided for raw materials, work in process, and finished goods at the beginning and end of the year. Total manufacturing costs were $675,000, cost of goods available for sale was $720,000, unadjusted cost of goods sold was $665,000, and net operating income was $35,000, with any over or underapplied overhead closed to cost of goods sold.

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    Practice Exercise- Job Order Costing

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    Valenko Company provided account balances for the year ended December 31 including $215,000 in selling expenses, $260,000 in raw material purchases, $160,000 in administrative expenses, $340,000 in manufacturing overhead applied to work in process, and $350,000 in total actual manufacturing overhead costs. Inventory balances were provided for raw materials, work in process, and finished goods at the beginning and end of the year. Total manufacturing costs were $675,000, cost of goods available for sale was $720,000, unadjusted cost of goods sold was $665,000, and net operating income was $35,000, with any over or underapplied overhead closed to cost of goods sold.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    58 views1 page

    Practice Exercise - Job Order Costing

    Uploaded by

    Dennis Alea
    Valenko Company provided account balances for the year ended December 31 including $215,000 in selling expenses, $260,000 in raw material purchases, $160,000 in administrative expenses, $340,000 in manufacturing overhead applied to work in process, and $350,000 in total actual manufacturing overhead costs. Inventory balances were provided for raw materials, work in process, and finished goods at the beginning and end of the year. Total manufacturing costs were $675,000, cost of goods available for sale was $720,000, unadjusted cost of goods sold was $665,000, and net operating income was $35,000, with any over or underapplied overhead closed to cost of goods sold.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Practice Exercise: Job-order Costing

    Valenko Company provided the following account balances for the year ended December
    31 (all raw materials are used in production as direct materials):
    Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $215,000
    Purchases of raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $260,000
    Direct labor ........................................?
    Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160,000
    Manufacturing overhead applied to work in process . . . . . . . . . $340,000
    Total actual manufacturing overhead costs . . . . . . . . . . . . . . . $350,000
    Inventory balances at the beginning and end of the year were as follows:

    Beg. inventory End. inventory


    Raw materials . . . . . . . . . . . . . . . . . . $50,000 $40,000
    Work in process . . . . . . . . . . . . . . . . ? $33,000
    Finished goods . . . . . . . . . . . . . . . . . $30,000 ?

    The total manufacturing costs for the year were $675,000; the cost of goods available for
    sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net
    operating income was $35,000. The company’s overapplied or underapplied overhead is
    closed entirely to cost of goods sold.

    Prepare schedules of cost of goods manufactured and cost of goods sold and an income
    statement. (Hint: Prepare the income statement and schedule of cost of goods sold first
    followed by the schedule of cost of goods manufactured).

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