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    Job Costing Assignment

    Uploaded by

    Kwason Taylor
    The document provides information to prepare financial statements for Junaluska Company for the year ended December 31, 2020 including beginning and ending inventory amounts, revenues, expenses, and tax expense. It also provides transactions to journalize for Malone Custom Furniture and account balance information for Rupert Manufacturing to calculate ending account balances.

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    Job Costing Assignment

    Uploaded by

    Kwason Taylor
    347 views6 pages
    The document provides information to prepare financial statements for Junaluska Company for the year ended December 31, 2020 including beginning and ending inventory amounts, revenues, expenses, and tax expense. It also provides transactions to journalize for Malone Custom Furniture and account balance information for Rupert Manufacturing to calculate ending account balances.

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    The document provides information to prepare financial statements for Junaluska Company for the year ended December 31, 2020 including beginning and ending inventory amounts, revenues, expenses, and tax expense. It also provides transactions to journalize for Malone Custom Furniture and account balance information for Rupert Manufacturing to calculate ending account balances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    347 views6 pages

    Job Costing Assignment

    Uploaded by

    Kwason Taylor
    The document provides information to prepare financial statements for Junaluska Company for the year ended December 31, 2020 including beginning and ending inventory amounts, revenues, expenses, and tax expense. It also provides transactions to journalize for Malone Custom Furniture and account balance information for Rupert Manufacturing to calculate ending account balances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Question 1

    Based on the following information, prepare a Schedule of Cost of Goods Manufactured and a
    multi-step Income Statement for Junaluska Company for the year ended December 31, 2020

    Beginning Work-in-Process Inventory, Jan.


    1 $60,000
    Ending Work-in-Process Inventory, Dec. 31 40,000
    Beginning Finished Goods Inventory, Jan. 1 50,000
    Ending Finished Goods Inventory, Dec. 31 20,000
    Net Sales Revenue 1,800,000
    Selling and Administrative Expenses 500,000
    Direct Labor 300,000
    Manufacturing Overhead; actual and
    allocated 400,000
    Direct Materials Used 200,000
    Income Tax Expense 70,000
    Question 2

    Journalize the following transactions for Malone Custom Furniture Manufacturing (omit
    explanations):
    a. Incurred and paid advertising expenses, $3,500.
    b. Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40% of which
    was indirect labor. Wages will be paid at a later date.
    c. Purchased raw materials on account, $27,000.
    d. Used in production: direct materials, $12,000; indirect materials, $5,500
    e. Recorded manufacturing overhead: depreciation on plant, $14,000; plant insurance
    (previously paid), $1,800; plant property tax, $4,500 (credit Property Tax Payable).
    f. Allocated manufacturing overhead to jobs, 150% of direct labor costs.
    g. Completed production on jobs with costs of $55,000.
    h. Sold inventory on account, $64,000; cost of goods sold, $35,000. The company uses the
    perpetual inventory system.
    i. Adjusted for overallocated or underallocated overhead.

    Item   Accounts and Explanation    Debit   Credit


    a.   Advertising Expenses    3,500   
            Cash       3,500
             
    b.   Work-in-Process Inventory               18,000   
       Manufacturing Overhead               12,000   
            Wages Payable       30,000

    c.   Raw Materials Inventory    27,000   


            Accounts Payable       27,000
             
    d.   Work-in-Process Inventory              12,000   
       Manufacturing Overhead               5,500   
            Raw Materials Inventory       17,500
             
    e.   Manufacturing Overhead              14,000   
            Accumulated Depreciation Plant       14,000
             
       Manufacturing Overhead                1,800   
            Prepaid Insurance       1,800
             
       Manufacturing Overhead               4,500   
            Property Tax Payable       4,500
              
    f.   Work-in-Process Inventory ($18,000 × 150%)           27,000   
             Manufacturing Overhead      27,000
             
    g.   Finished Goods Inventory         55,000   
            Work-in-Process Inventory      55,000
             

    Debit Credit

    h.   Accounts Receivable             64,000   


            Sales Revenue       64,000
             
       Cost of Goods Sold             35,000   
            Finished Goods Inventory       35,000
             
    i.   Cost of Goods Sold    10,800   
            Manufacturing Overhead       10,800
    Question 3
    At the beginning of the year, Rupert Manufacturing had the following account balances:

    Work-in-Process Inventory
    2,000

    Finished Goods Inventory


    8,000

    Manufacturing Overhead
    0

    Cost of Goods Sold


    0

    Sales Revenue
    0

    The following additional details are provided for the year:

    Direct materials placed in production $ 80,000


    Direct labor incurred 190,000
    Manufacturing overhead incurred 300,000
    Manufacturing overhead allocated to production 295,000
    Cost of jobs completed 500,000
    Jobs sold for total revenue of 750,000
    Cost of jobs sold 440,000

    The remaining balance of Manufacturing Overhead was adjusted to zero. Calculate the ending
    balances in Work-in-Process Inventory, Finished Goods Inventory, Manufacturing Overhead
    (unadjusted), and Cost of Goods Sold (after adjustment.)

    Work-in-Process Inventory:

    Beginning balance   $2,000

    Add:

    Direct materials placed in production   80,000

    Direct labor incurred   190,000

    Manufacturing overhead allocated to production   295,000

    Less:

    Cost of jobs completed   (500,000)

    Ending balance in Work-in-Process Inventory   $67,000 (Dr.)

    Finished Goods Inventory:

    Beginning balance   $8,000

    Add: Finished goods transferred from Work-in-Process Inventory   500,000   

    Less: Cost of Goods Sold   (440,000 )

    Ending balance   $68,000 (Dr.)

    Manufacturing Overhead:

    Manufacturing overhead incurred   300,000

    Less: Manufacturing overhead allocated to production   (295,000 )

    Unadjusted balance   5,000 (Dr.)


    Cost of Goods Sold   $440,000

    Adjustment to manufacturing overhead account:

    Manufacturing overhead incurred   $300,000

    Manufacturing overhead allocated to production   295,000   5,000

    Balance in Cost of Goods Sold (after adjustments)   445,000 (Dr.)

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