Question

Job Order Costing: XTN company uses direct labor cost as the basis to determine Overheads. The estimated overheads for the year are Rs.1.5 million while the estimated direct labor costs are Rs.2 million. Following transactions are for the 1st quarter of year 2020: • Company Purchased Raw Material on accounts for Rs.350,000. • Labor Costs incurred were Rs.500,000. Out of which Rs.450,000 pertains to wages payable while remaining are taxes payable. • Manufacturing overheads incurred in the first quarter, excluding indirect labor and indirect material, were Rs.80,000. Company’s costs assigned to various jobs are: Jobs Direct Material Direct Labor Job XT121 Rs.55,000 Rs.100,000 Job XT122 Rs.60,000 Rs.80,000 Job XT123 Rs.45,000 Rs.100,000 General Factory Use Rs.15,000 Rs.20,000 • Jobs completed during the quarter were XT121 and XT123. • Sold XT121 for Rs.350,000 on account. Required: 1. Show the journal entries for Accumulation, Assignment of costs, Completion, and Sales. 2. Determine Over/Under Applied MOH while also passing the adjusting journal entry. 

          Job Order Costing: XTN company uses direct labor cost as the basis to determine Overheads. The estimated overheads for the year are Rs.1.5 million while the estimated direct labor costs are Rs.2 million. Following transactions are for the 1st quarter of year 2020:

• Company Purchased Raw Material on accounts for Rs.350,000.
• Labor Costs incurred were Rs.500,000. Out of which Rs.450,000 pertains to wages payable while remaining are taxes payable.
• Manufacturing overheads incurred in the first quarter, excluding indirect labor and indirect material, were Rs.80,000.
Company’s costs assigned to various jobs are:
Jobs Direct Material Direct Labor
Job XT121 Rs.55,000 Rs.100,000
Job XT122 Rs.60,000 Rs.80,000
Job XT123 Rs.45,000 Rs.100,000
General Factory Use Rs.15,000 Rs.20,000

• Jobs completed during the quarter were XT121 and XT123.
• Sold XT121 for Rs.350,000 on account.

Required:

1. Show the journal entries for Accumulation, Assignment of costs, Completion, and Sales.
2. Determine Over/Under Applied MOH while also passing the adjusting journal entry.
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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Job Order Costing: XTN company uses direct labor cost as the basis to determine Overheads. The estimated overheads for the year are Rs.1.5 million while the estimated direct labor costs are Rs.2 million. Following transactions are for the 1st quarter of year 2020: • Company Purchased Raw Material on accounts for Rs.350,000. • Labor Costs incurred were Rs.500,000. Out of which Rs.450,000 pertains to wages payable while remaining are taxes payable. • Manufacturing overheads incurred in the first quarter, excluding indirect labor and indirect material, were Rs.80,000. Company’s costs assigned to various jobs are: Jobs Direct Material Direct Labor Job XT121 Rs.55,000 Rs.100,000 Job XT122 Rs.60,000 Rs.80,000 Job XT123 Rs.45,000 Rs.100,000 General Factory Use Rs.15,000 Rs.20,000 • Jobs completed during the quarter were XT121 and XT123. • Sold XT121 for Rs.350,000 on account. Required: 1. Show the journal entries for Accumulation, Assignment of costs, Completion, and Sales. 2. Determine Over/Under Applied MOH while also passing the adjusting journal entry.
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Transcript

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00:03 Let's calculate the predetermined overhead rate for the year 2021.
00:11 The mind over was $2 and d lag divided by followed by 80 % this means that for every dollar one of direct labor cost if x manufacturing company expect to a 0 .80 of manufacturing overhead cost now, we have to prepare the job cost cards for each jobs.
01:00 Here are the job cost cards the job one static materials for the 10 ,000 direct labor for the 5000 manufacturing overhead and observe $5 ,000 is $4 ,000 total cost $19.
02:04 Job to add a committee for the 2000 direct labor for the 5000 manufacturing overhead head for the 8 and and to posters for the 3800 for the job 3 that equity for a 6 actually overhead for the 20 total cost 7400.
03:34 What is the balance in work in process inventory? it is a cost of the partially completed job...
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