ACCT Assignment 5

✓ 5. Work in Process, balance, $89,160

Shenandoah Equipment Company uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:

a. Materials purchased on account, $93,600.

b. Materials requisitioned and factory labor used:

Job Materials Factory Labor

No. 6001 $ 9,400 $ 8,800

No. 6002  11,500  11,880

No. 6003 7,600 5,960

No. 6004 25,800 21,840

No. 6005  16,400 16,600

No. 6006 11,920 10,600

For general 3,440 13,000

factory use  

c. Factory overhead costs incurred on account, $18,000.

d. Depreciation of machinery and equipment, $6,240.

e. The factory overhead rate is $50 per machine hour. Machine hours used:

f. Jobs completed: 6001, 6002, 6003, and 6005.

g. Jobs were shipped and customers were billed as follows: Job 6001, $26,000; Job 6002, $36,000; Job 6003, $48,000.

Instructions

1. Prepare a schedule summarizing manufacturing costs by job for June. Use the following form:

Job Direct Materials Direct Labor Factory Overhead Total

_____________________________________________________________________

2. Prepare a schedule of jobs finished in June.

3. Prepare a schedule of jobs sold in June. What account does this schedule support for the month of June?

4. Prepare a schedule of completed jobs on hand as of June 30, 2012. What account does this schedule support?

5. Prepare a schedule of unfinished jobs as of June 30, 2012. What account does this schedule support?

6. Determine the gross profit for June based upon the jobs sold.

(Warren 422-423)

Warren, Carl S. Survey of Accounting, 6th Edition. Cengage Learning, 02/2012. VitalBook file.