# Chapter 5 - ACCT 3337: Demonstration problem for Chapter 5:...

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1 ACCT 3337: Demonstration problem for Chapter 5: Job order costing Inventory records used in a job order cost system include both the control account and the underlying subsidiary ledger accounts. Raw Materials Inventory# N Job#1 Job#N Product #1 Product #N Raw Materials Inventory- Control Work-in-progress-Control Finished Goods Inventory- Control Raw Materials Inventory#1 Finished Goods Inventory- Subsidiary ledgers Raw Materials-Subsidiary ledgers Job Cost Sheet -Subsidiary ledgers Computation of the predetermined manufacturing overhead (MOH) rate: Projected activity: 20 units (only make Job#101) Table 1: Budgeted manufacturing overhead costs Variable Cost per unit Fixed cost Total Indirect materials \$1 - \$20 Indirect labor \$2 - \$40 Depreciation on plant and equipment - \$60 \$60 Property Taxes - \$10 \$10 Insurance - \$10 \$10 Utilities \$1 - \$20 Total \$4 \$80 \$160 ࠵±²³²´²±µ¶·²³ ¸¹º »¼´² = ½¾´¼¿ ÀÁ³Â²´²³ ¸¹º ࠵±¾Ã²Ä´²³ ¼Ä´¶Å¶´Æ = \$160 20 Á·¶´Ç = \$8 È²± Á·¶´ ½¾´¼¿ ÀÁ³Â²´²³ ¸¹º = \$80 + (\$4 ∗ 20 Á·¶´Ç) = \$160 Inventory beginning balances (control accounts) \$10 \$20 \$30 \$40 Indirect Materials Inventory Raw Materials Inventory Work-in-progress inventory Finished Goods Inventory

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2 Work-in-progress inventory control Job #101: \$30; There are 20 units for this job and the job is 5% complete Finished goods inventory control--Job #99: \$40; There are 10 units for this job. Transactions during the accounting period
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## This note was uploaded on 11/09/2011 for the course ACCT 3337 taught by Professor Staff during the Fall '08 term at University of Houston.

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Chapter 5 - ACCT 3337: Demonstration problem for Chapter 5:...

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