Job Order
Costing
Chapter 17
Exercises
Job Order Costing
• In-Class Exercise (Form groups and work exercise):
• Exercise No.
E17-19
Page
1043
Allocating & adjusting
manufacturing overhead
Allocating & Adjusting Manufacturing Overhead
Exercise E17-19:
Selective cost data for Antique Print Co. are as follows:
Estimated manufacturing overhead cost for the year…..$
Estimated dir labor cost for the year……………………….
Actual manufacturing overhead cost for the year……….
Actual direct labor cost for the year………………………..
115,000
71,875
119,000
73,000
Requirements:
(1) Compute the predetermined overhead rate per direct labor dollar.
(2) Prepare the journal entry to allocate overhead cost for the year.
(3) Use a T-account to determine the amount of under-allocated or
over-allocated manufacturing overhead.
(4) Prepare the journal entry to adjust for the under-allocated or
over-allocated manufacturing overhead.
Allocating & Adjusting Manufacturing Overhead
Allocating & Adjusting Manufacturing Overhead
Estimated overhead cost
Estimated dir.labor cost
Allocating & Adjusting Manufacturing Overhead
Allocating & Adjusting Manufacturing Overhead
Allocating & Adjusting Manufacturing Overhead
Allocating & Adjusting Manufacturing Overhead
End of Exercise
Preparing Job Order Costing Journal Entries
• In-Class Exercise (Form groups and work exercise):
• Exercise No.
E17-24
Page
1046
Preparing job order costing
journal entries
(Use the format, as reflected on the next slide, to
complete this exercise)
Preparing Job Order Costing Journal Entries
General Journal
Date
Description
Debit
Credit
Preparing Job Order Costing Journal Entries
Exercise E17-24:
Journalize the following transactions of Judy’s Sofas:
a. Incurred and paid website expenses, $2,900.
b. Incurred manufacturing wages of $15,000, 60% of which was
direct labor and 40% of which was indirect labor.
c. Purchased raw materials on account, $14,000.
d. Used in production: direct materials, $9,500
indirect materials, $4,500
e. Recorded manufacturing overhead depreciation on plant, $10,000;
plant insurance (previously paid), $1,300; plant property tax, $4,200
(credit Property Tax Payable).
f. Allocated manufacturing overhead to jobs, 250% of direct labor costs.
g. Completed production on jobs with costs of $38,000.
h. Sold inventory on account, $20,000; cost of goods sold, $10,000.
i. Adjusted for over-allocation or under-allocation of overhead.
Preparing Job Order Costing Journal Entries
e.
Preparing Job Order Costing Journal Entries
e.
Preparing Job Order Costing Journal Entries
e.
Manufacturing Overhead
b. 6,000
d. 4,500
e. 10,000
e. 1,300
e. 4,200
26,000
f.
22,500
i.
3,500
26,000
Preparing Job Order Costing Journal Entries
End of Exercise