Chapter 3 GammaCorp - Problem: JOB COSTING Gamma Company...

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Problem: JOB COSTING Gamma Company employs a job-order costing system. For the year ended Dec. 31, 2013, the company’s records showed inventory balances as follows: Beginning Ending Raw materials ………… $30,000 $ ? Work in process ………… 60,000 1 ? Finished goods ………… 90,000 ? During the year, the following transactions were completed: a) Raw materials acquired from suppliers on account, $400,000 b) Raw materials requisitioned for use in production, $360,000 ($200,000 for Job A, $100,000 for Job B and $60,000 indirect). c) Costs for employee services were incurred as follows: Direct labor costs …. $ 90,000 (50,000 for Job A; $40,000 Job B) Indirect labor costs . . $ 85,000 d) Depreciation was recorded on equipment, of which $40,000 related to equipment used in the factory and $30,000 related to equipment used in selling and administrative activities. e) Advertising expense accrued, $220,000.
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This note was uploaded on 04/03/2012 for the course RSM 222 taught by Professor D.cianflone during the Spring '10 term at University of Toronto- Toronto.

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Chapter 3 GammaCorp - Problem: JOB COSTING Gamma Company...

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