Job

Costing
Soal 1

4. Amounts at the end of 2011 are as follows:

machining dept

finishing dept
MOH incurred

11,070,000

8,236,000
DML cost


1,000,000


4,400,000
Machine-hours

210,000


31,000
Compute the under/overallocated MOH for each department and for the Dover
plant as a whole.

Soal 2
Tandem Inc prints custom marketing materials. The business was started January
1,2010. The company uses normal costing system. It has two direct costs pools,
materials and labor and one indirect cost pool, overhead. Overhead is charged to
printing jobs on the basis of direct labor costs. The following information is available
for 2010.
Budgeted direct labor. $150,000
Budgeted overhead costs. $180,000
Costs of actual materials used $126,500
Actual direct labor costs. $148,750
Actual overhead cots. $176,000

There were two jobs in process on December 31,2010: job 11 and job 12. Costs
added to each job as of December 31 are as follows:
Direct materials
Direct labor
Job 11 $3,620

$4,500
Job 12 $6,830

$7,250
Tamden inc has no finished goods inventories because all the printing jobs are
transferred to cost of goods sold when completed
1. Compute the overhead allocation rate
2. Calculate the balance in ending work in process and costs of goods sold
before any adjustments for under or over allocated overhead
3. Calculate under or over allocated overhead
4. Calculate the ending balance in work in process and cost of goods sold if the
under or over allocated overhead amount is as follows:
A. Written off to COGS
B. Prorated using ending balance (before proration) in COGS and work in
process control accounts.
Soal 3
Bluebird Transport assembles prestige manufactured homes. Its job costing system has
two direct-cost categories (direct materials and direct manufacturing labour) and one
indirect cost pool (manufacturing overhead allocated at a budgeted $30 per machine
hour in 2015). The following data (in millions) pertain to operations for 2015:










$

Materials Control, December 31, 2015



12

Work-in-process, December 31, 2015



2

Finished Goods Control, December 31, 2015


6

Materials and Supplies purchased on account

150

Direct Materials used




145

Indirect materials used in the production departments

10

Direct manufacturing labour




90

Indirect manufacturing labour used in the production departments 30

Depreciation on plant and manufacturing equipment

19

Miscellaneous manufacturing overheads



9

Manufacturing overheads allocated - 2,100,000 actual machine hours ?

Cost of goods manufactured




294

Revenues







400

Cost of goods sold






292

Required:

1. Prepare journal entries reflecting the above transactions
2. Show the journal entry for disposing of the under- and over-allocated
manufacturing overhead directly as a year-end write-off to Cost of Goods Sold.
Post the entry to T-accounts