Question

The job cost sheet for 1,000 units of toy trucks is:
  

Job Number 555
Date Started    4/13
Date Completed          6/18
Raw Materials					Direct Labor
Date	Type	Cost	Qty.	Amount	Cost	Hours	Amount
4/13	565	$3	1,000	$3,000	$18	20	$360
5/24	889	1	4,000	4,000	12	10	120
6/18	248	2	1,000	2,000	15	100	1,500
Totals				$9,000		130	$1,980

Total direct materials	$9,000
Total direct labor	1,980
Overhead (130 direct labor hours @ $10/hour)	1,300
Total Job Cost	$12,280

All of the materials for the job were purchased on 4/10. The batch of 1,000 toy trucks is sold on 7/10.

What are the costs of this job order in the raw materials account, the work-in-process account, the finished goods account, and the cost of goods account on 4/30, 5/31, 6/30 and 7/31?  

Answer 1

1)Raw Material Account

	As on 4/30	As on 5/31	As on 6/30	As on 7/31
Balance	$ 6000 (9000 -3000)	$2000 (6000 -4000)	$0 (2000-2000)	$0

Working Note.

Material Balance as on 4/10 = $9000

Material Used in job on 4/13 =3000

So Material balance as on 4/30 = 9000-3000 =$6000

Material used in job as on 5/24 = 4000

Balance as on 5/31 =(6000 -4000) = 2000

Material used in Job on 6/18 = 2000

Balance as on 6/30 = (2000-2000) = 0

Journal entry will be

Work in process a/c dr

to Raw material account

2) Work in Process Account

	As on 4/30	As on 5/31	As on 6/30	As on 7/31
Balance	3560 (3000+360+200)	7780 (3560+4000+120+100)	0	0

working notes

Here Work in process accounts debited with Direct material,labor, and overhead costs the ledger will be

Dr Wor k in process A/c cr

Date	Particualr	Amount	Date	Particular	Amount
4/13	Direct Material	3000
	Direct labor	360
	Overhead	200 (20*10)
			4/30	Balance (b/d)	3560
	Total	3560		Total	3560
5/1	Balance (c/d)	3560
5/24	direct material	4000
	Direct Labor	120
	Overhead	100 (10*10)	5/30	Balance (b/d)	7780
	Total	7780		Total	7780
6/1	Balance (c/d)	7780	6/18	Finished goods	12280
6/18	Direct material	2000
	Direct Labor	1500
	Overhead	1000(100*10)	6/30	Balance	0
	Total	12280		Total	12280

Entry will be

Work in process a/c dr

To Direct material a/c

Direct labor a/c

overhead a/c

Here works are completed on 6/18 and same will transferred to finish goods inventory

3) Finished goods

	As on 4/30	As on 5/31	As on 6/30	As on 7/31
Balance	0	0	12280	0

Working note

.Finished goods A/c

Date	Particualr	Amount	Date	Particular	Amount
6/18	Work in process	12280
			6/30	Balance (b/d)	12280
	Total	12280		Total	12280
7/1	Balance (c/d)	12280	7/10	Cost of goods sold	12280
			7/31	Balance	0
	Total	12280		Total	12280

When works are finished entry will be

Finish goods a/c dr

to Work in process a/c

3) Cost of goods sold

	As on 4/30	As on 5/31	As on 6/30	As on 7/31
Balance	0	0	0	12280

Working note

Cost of goods sold A/C

Date	Particualr	Amount	Date	Particular	Amount
7/10	Finished goods	12280
			7/31	Balance (b/d)	12280
	Total	12280		Total	12280

When goods are sold entry will be

Cost of goods sold a/c Dr

To Finished goods a/c