Exercise 5: USE OF COST SHEETS Siboney Furniture, Inc. started its operation in 200C and has requested for your assistance in costing the different jobs it processed during the first two months of the year. Based on estimated factory overhead figures, the same should be charged at the rate of P25 per direct labor hour. Desired gross profit is 33-1/3 % of selling price. The jobs worked on in January and February and the corresponding direct charges are as follows: January, 200M Jobs accepted: Job Order No. 001: 250 narra chairs for Lauro Miguel Ordered January 5 and needed on February 10 Date started: January 7 Date finished: February 8 Job Order No. 002: Ten (10) of mahogany bar stools for Delia Ruiz Ordered January 8 and needed on January 30 Date started: January 10 Date finished: January 26 February, 200M

Exercise 5: USE OF COST SHEETS Siboney Furniture, Inc. started its operation in 200C and has requested for your assistance in costing the different jobs it processed during the first two months of the year. Based on estimated factory overhead figures, the same should be charged at the rate of P25 per direct labor hour. Desired gross profit is 33-1/3 % of selling price. The jobs worked on in January and February and the corresponding direct charges are as follows: January, 200M Jobs accepted: Job Order No. 001: 250 narra chairs for Lauro Miguel Ordered January 5 and needed on February 10 Date started: January 7 Date finished: February 8 Job Order No. 002: Ten (10) of mahogany bar stools for Delia Ruiz Ordered January 8 and needed on January 30 Date started: January 10 Date finished: January 26 February, 200M

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Description: COST ACCOUNTING D cost_problems.docx.pdf->O File | C:/Users/acer/Downloads/cost_problems.docx.pdfDirect Labor costs per time ticketsDateJob Order No. Labor HoursP 1,8001,200Jan. 6-12001500023013-190011003,0000021204,60020-26001802,7000023,8001,600P 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

COST ACCOUNTING

D cost_problems.docx.pdf
->
O File | C:/Users/acer/Downloads/cost_problems.docx.pdf
Direct Labor costs per time tickets
Date
Job Order No. Labor Hours
P 1,800
1,200
Jan. 6-12
001
50
002
30
13-19
001
100
3,000
002
120
4,600
20-26
001
80
2,700
002
3,800
1,600
P 29,000
200
27-28
001
50
630
Feb.
3-9
001
120
4,100
10-16
003
210
4,050
004
10
400
160
5,800
4,300
17-23
003
004
120
24-28
003
70
2,500
1,950
P 23,100
004
55
745
Required:
a. Cost sheets
b. T-accounts for work-in process for January and February,200c
c. Proof of work in process inventory, January 31, 200M
d. Statement of cost of goods manufactured for February, 200M (supported by job order costs)
e. Proof of work in process inventory, February 28, 200M
7:50 pm
W
G 4») ENG
20/04/2022

D cost_problems.docx.pdf
->
O File C:/Users/acer/Downloads/cost_problems.docx.pdf
Exercise 5: USE OF COST SHEETS
Siboney Furniture, Inc. started its operation in 200C and has requested for your assistance in
costing the different jobs it processed during the first two months of the year. Based on estimated
factory overhead figures, the same should be charged at the rate of P25 per direct labor hour. Desired
gross profit is 33-1/3% of selling price.
The jobs worked on in January and February and the corresponding direct charges are as follows:
January. 200M
Jobs accepted:
Job Order No. 001:
250 narra chairs for Lauro Miguel
Ordered January 5 and needed on February 10
Date started: January 7
Date finished: February 8
Job Order No. 002: Ten (10) of mahogany bar stools for Delia Ruiz
Ordered January 8 and needed on January 30
Date started: January 10
Date finished: January 26
February, 200M
Jobs accepted:
Job Order No. 003:
10 narra sala sets for Interiors Supreme, Inc.
Ordered February 10 and needed on March 20
Date started: February 12
5 mahogany and narra beds for Milan Furniture, Inc.
Ordered February 15 and needed on March 31
Job Order No. 004:
Date started: February 16
Direct Materials issued:
Requisition No. Job Order No.
IT:
Date
Jan. 7
R-001
R-003
R-004
Amount
P 12, 000
6,000
001
10
002
12
001
8,000
26
R-006
002
3,000
29,000
Feb. 5
R-009
001
5,500
12
R-012
03
15,500
8,200
16
R-015
004
21
R-018
04
2,600
5,800
P 37, 600
28
R-029
003
7:50 pm
W
G 4») ENG
20/04/2022

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Step 1: Introduction:

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Step 2: (a) Complete the cost sheets:

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Step 3: (b) Prepare T-accounts for work-in-process for January and February:

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Step 4: (c) Prepare proof of work in process inventory on January 31:

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