YOUTH.inc. provides custom-made umbrellas for its client. The company accumulates its production cost using a job-order costing system. On April 1, 2019, the raw materials account shows a balance of Rp 50.000. The following transactions in Hargreeves Inc. during April 2019:a. Balance of WIP Inventory at April 1st for Job #K-004 is:...... a. Balance of WIP Inventory at April 1st for Job #K-004 is:Direct MaterialsDirect LaborFOH AppliedRp 50.000Rp 100.000Rp 50.000b. Purchase raw materials Rp 2.000.000. Rp 1.000.000 was paid in cash while the rest will bepaid next monthc. Usage on materials and labor during April shows the following:Job #L-001Job #K-004Job #F-005UnassignedMaterials Used Rp 150.000Rp 175.000Rp 116.000Rp 289.000Labor UsedRp 195.000Rp 273.000Rp 117.000Rp 445.000d. Depreciation expenses during April were Rp 300.000 for the factory building, Rp 200.000for factory machines, and Rp 400.000 for the office building e. Allocation of manufacturing overhead to each job by 180% of Direct Labor Hour.f. Jobs completed are going to be transferred to the warehouse. Jobs completed during Aprilare Job #L-001 and Job #K-004g. Sold the product of Job #L-001 to the customer with a sales price of Rp 1.500.000Required:1. Based on the information provided, prepare the necessary journal for Hargreeves Inc.2. Determine ending balance of Raw Materials inventory, WIP Inventory, Finished GoodInventory, and COGS3. Prepare journal entries to write off the over/under allocated manufacturing overhead to theCOGS account

Job costing: It is a method of costing where in all the costs like direct material, direct labor and…

YOUTH.inc. provides custom-made umbrellas for its client. The company accumulates its production cost using a job-order costing system. On April 1, 2019, the raw materials account shows a balance of Rp 50.000. The following transactions in Hargreeves Inc. during April 2019:a. Balance of WIP Inventory at April 1st for Job #K-004 is:......

YOUTH.inc. provides custom-made umbrellas for its client. The company accumulates its production cost using a job-order costing system. On April 1, 2019, the raw materials account shows a balance of Rp 50.000. The following transactions in Hargreeves Inc. during April 2019:a. Balance of WIP Inventory at April 1st for Job #K-004 is:......

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

a. Balance of WIP Inventory at April 1st for Job #K-004 is:
Direct Materials
Direct Labor
FOH Applied
Rp 50.000
Rp 100.000
Rp 50.000
b. Purchase raw materials Rp 2.000.000. Rp 1.000.000 was paid in cash while the rest will be
paid next month
c. Usage on materials and labor during April shows the following:
Job #L-001
Job #K-004
Job #F-005
Unassigned
Materials Used Rp 150.000
Rp 175.000
Rp 116.000
Rp 289.000
Labor Used
Rp 195.000
Rp 273.000
Rp 117.000
Rp 445.000
d. Depreciation expenses during April were Rp 300.000 for the factory building, Rp 200.000
for factory machines, and Rp 400.000 for the office building

e. Allocation of manufacturing overhead to each job by 180% of Direct Labor Hour.
f. Jobs completed are going to be transferred to the warehouse. Jobs completed during April
are Job #L-001 and Job #K-004
g. Sold the product of Job #L-001 to the customer with a sales price of Rp 1.500.000
Required:
1. Based on the information provided, prepare the necessary journal for Hargreeves Inc.
2. Determine ending balance of Raw Materials inventory, WIP Inventory, Finished Good
Inventory, and COGS
3. Prepare journal entries to write off the over/under allocated manufacturing overhead to the
COGS account

Definition Definition Accounting technique that tracks the costs of materials, labor, and overhead for a particular job. The main purpose of job costing is to determine the profit or loss for each job. Repetitive work or poorly allocated employees can be addressed for the upcoming project through job costing.

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