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Job order costing
ACG 2071 Managerial Accounting
Job Order Costing Systems
Minicase
JOB ORDER COSTING: Radical Jets produces and sells custom built jets for corporate and personal use.
The following information was found in the general ledger:
Account Beginning
Balance
Materials inventory $50,000
Goods in process $200,000
Finished Goods $325,000
• Current jobs:
Job No. Direct
Materials
Direct Labor Factory
Overhead
Total Costs
2145 $9,000 $12,000
2146 $8,000 $10,000
2147 $7,500 $9,000
2148 $6,000 $7,500
2150 $5,000 $7,000
Indirect $4,300 $3,600
Totals
Factory overhead is applied based on direct labor costs. The company estimates that factory overhead
is $136,500.
• Required:
1. Record the entry for the purchase of $34,000 in materials on account.
2. Record the entry for the requisition of materials
3. Record the entry for labor
4. Record the application of factory overhead
5. Record the completion of jobs: 2145, 2146, and 2147.
6. Record the sale of job 2145 for $50,000.
7. What are the ending balances for the three inventory accounts?
Use excel to complete the work. Template attached.
Sheet1
| Name: | Problem: | ||||||
| JOURNAL | |||||||
| Date | Account | Debit | Credit |
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Sheet2
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Sheet3
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Sheet4
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Sheet5
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Sheet6
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Sheet7
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Sheet8
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Sheet9
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Sheet10
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Sheet11
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Sheet12
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Sheet13
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Sheet14
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Sheet15
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Sheet16
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