Job order costing
Date Ex Ref Dr Cr
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
Raw material Dr A/P Cr
WIP Dr MOH Dr
Raw material Cr WIP Dr
MOH Dr
Sales commission expense Dr Administrative salary expense Dr Salary and wage payable Cr Sales travel expense Dr A/P Cr
MOH Dr A/P Cr
Advertising expense dr A/P cr
MOH Dr
Depreciation Dr
Accumulated Depreciation Cr MOH Dr
Insurance Expense Dr Prepaid insurance Cr WIP DR
MOH Cr
Finished good Dr WIP Cr
A/R Dr Sales Cr
Cost of Goods sold Dr Finished good Cr
410000
360000 20000
75000 110000 90000 200000
17000
43000
180000
280000 70000
7000 3000
480000
900000
1500000
870000
410000
380000
475000
17000
43000
180000
350000
10000
480000
900000
1500000
870000
Overhead rate per MH= 450000/75000=6 Tk Applied MOH cost= 80000*6=480000 Tk Adjusting Journal:
MOH Dr 20000
Cost of goods sold Cr 20000 I/S:
Sales
_Cost of good sold(870000- 20000)
Gross profit
_ Operating expense:
Sales commission Exp Administrative salary exp Depreciation exp
Insurance Exp Sales travel exp Advertising exp Net income
90000 110000 70000 3000 17000 180000
1500000 850000 650000
470000 180000
3-18:
Applied manufacturing overhead cost:
Predetermined overhead rate: E. Total overhead cost /E. Total machine hours = 99000/45000=2.2 Tk per MH
Actual machine hours worked 50000
The amount of applied MOH cost will be 50000*2.2=110000 Tk WIP Dr 110000
MOH Cr 110000
3-21:
Applied MOH cost:
% of MOH on the basis of direct labour cost:
80000/100000*100=80%
Actual Direct labour cost 120000 Tk
% of MOH cost on the basis of Direct labour cost 80%
Applied MOH cost 120000*80%=96000 Tk WIP Dr 96000
MOH Cr 96000
Date Exp Ref Dr Cr
a)
Raw material Dr A/P Cr
80000
80000
b) WIP Dr
MOH Dr
Raw material Cr
85000 5000
90000 c) WIP Dr
MOH Dr
Selling & Administrative salary exp Dr
Cash Cr
120000 30000 75000
225000
d) MOH Dr
A/P Cr
12000
12000
e) MOH Dr
Depreciation Dr
Accumulated Depreciation Cr
25000 5000
30000
f) MOH Dr
Insurance Exp Dr Prepaid Insurance Cr
4000 800
4800 g) Shipping Exp Dr
A/P cr
40000
40000
h) MOH Dr
A/P Cr
17000
17000 i) WIP Dr
MOH Cr
96000
96000 j) Finished goods Dr
WIP Cr
310000
310000 k) A/R Dr
Sales Cr COGS Dr
Finished Goods Cr
450000
300000
450000
300000
l) Cash Dr A/R Cr
445000
445000
m A/P Dr
Cash Cr
150000
150000
MOH ( Ledger)
Dr Cr 5000
30000 12000 25000 4000 17000
93000 96000
To close overapplied overhead cost MOH Dr 3000
WIP Cr 1000
Finished Good Cr 1000
COGS Cr 1000
I/S Sales 450000
_COGS (300000-1000) 299000 Gross profit 151000
_ Operating expense: Selling & Administrative salary 75000 Depreciation 5000
Insurance 800
Shipping exp 4000
Net income 66200
