
Concept explainers
Job cost sheet is defined as a document for recording
The information that is shown on job cost sheet usually includes materials requisition number, cost of direct materials issued, time tickets, direct labor hours, direct labor rate per hour, etc.
Requirement-1
To determine:
1) We have to prepare job sheets for the job 450 and 451.

Answer to Problem 5BPSB
Solution:
JOB COST SHEET | ||||||||||||||
Customer's Name | ENCINITA Company | Job No. | 450 | |||||||||||
Direct Materials | Direct Labor | |||||||||||||
Date |
Requisition Number |
Amount($) |
Time Ticket Number | Amount($) |
Date |
Rate |
Amount |
|||||||
223 | 16,000 | 1-10 | 40,000 | 70% | 28,000 | |||||||||
224 | 9,600 | |||||||||||||
SUMMARY | ||||||||||||||
Direct material | 25,600 | |||||||||||||
Direct labor | 40,000 | |||||||||||||
Overhead | 28,000 | |||||||||||||
Cost of job | 93,600 | |||||||||||||
Total | 25,600 | 40,000 | ||||||||||||
JOB COST SHEET | |||||||||||||||
Customer's Name | Fargo, Inc. | Job No. | 451 | ||||||||||||
Direct Materials | Direct Labor | Overhead Costs Applied | |||||||||||||
Date |
Requisition Number |
Amount |
Time Ticket Number | Amount |
Date |
Rate |
Amount |
||||||||
225 | 8,000 | 11-20 | 32,000 | June-- | 70% | 22,400 | |||||||||
226 | 4,800 | ||||||||||||||
SUMMARY OF COSTS | |||||||||||||||
Direct material | 12,800 | ||||||||||||||
Direct labor | 32000 | ||||||||||||||
Overhead | 22,400 | ||||||||||||||
Cost of job | 67,200 | ||||||||||||||
Total | 12,800 | Total | 32,000 | ||||||||||||
Explanation of Solution
Explanation:
Job cost sheet for Job no 450 and Job no 451 have been prepared taking into consideration the relevant requisition no for direct material, time ticket number for direct labor and overheads @ 70%.
Requirement-2
To determine
We have to prepare

Answer to Problem 5BPSB
Solution:
MATERIALS LEDGER CARD
Material M
Received | Issued | Balance | |||||||||
Date |
Receiving Report | Units |
Unit Price | Total Price | Requi-sition | Units |
Unit Price | Total Price | Units |
Unit Price | Total Price |
June 1 | 120 | 200 | 24,000 | ||||||||
20 | 150 | 200 | 30,000 | 270 | 200 | 54,000 | |||||
#223 | 80 | 200 | 16,000 | 190 | 200 | 38,000 | |||||
#225 | 40 | 200 | 8,000 | 150 | 200 | 30,000 |
MATERIALS LEDGER CARD
Material R
Received | Issued | Balance | |||||||||
Date |
Receiving Report | Units |
Unit Price | Total Price | Requi-sition | Units |
Unit Price | Total Price | Units |
Unit Price | Total Price |
June 1 | 80 | 160 | 12,800 | ||||||||
21 | 70 | 160 | 11,200 | 150 | 160 | 24,000 | |||||
224 | 60 | 160 | 9,600 | 90 | 160 | 14,400 | |||||
226 | 30 | 160 | 4,800 | 60 | 160 | 9,600 |
Material Ledger Card
Paint
Received | Issued | Balance | |||||||||||||
Date |
Receiving Report | Units |
Unit Price | Total Price | Requi-sition | Units |
Unit Price | Total Price | Units |
Unit Price | Total Price | ||||
June 1 | 44 | 72 | 3,168 | ||||||||||||
#227 | 12 | 72 | 864 | 32 | 72 | 2,304 | |||||||||
Explanation of Solution
Explanation:
The journal entries required are as below:
GENERAL JOURNAL | Debit($) | Credit($) | |
Raw Materials Inventory($30,000+$11,200 | 41,200 | ||
Accounts Payable | 41,200 | ||
(being materials purchases recorded). | |||
Factory Payroll | 84,000 | ||
Cash | 84,000 | ||
being factory payroll recorded) | |||
Factory Overhead | 36,800 | ||
Cash | 36,800 | ||
(being other factory overhead recorded) | |||
Finished Goods Inventory | 93,600 | ||
Goods in Process | 93,600 | ||
(being jobs completed recorded) | |||
290,000 | |||
Sales | 290,000 | ||
(being sales recorded) | |||
Cost of Goods Sold | 93,600 | ||
Finished Goods Inventory | 93,600 | ||
(being cost of sales recorded) | |||
Goods in Process Inventory($16,000 + $8,000 + $9,600 + $4,800) | 38,400 | ||
Factory Overhead | 864 | ||
Raw Materials Inventory | 39,264 | ||
(being direct & indirect materials recorded) | |||
Goods in Process Inventory ($40,000 + $32,000) | 72,000 | ||
Factory Overhead | 12,000 | ||
Factory Payroll | 84,000 | ||
(being direct & indirect labor recorded) | |||
Goods in Process Inventory ($28,000 + $22,400). | 50,400 | ||
Factory Overhead | 50,400 | ||
(being overhead applied) |
Requirement -3
To determine:
We have to compute factory overhead at the end of the month from the requirement 1 & 2.

Answer to Problem 5BPSB
Solution:
Factory overhead over applied is $736.
Explanation of Solution
Explanation:
The ending balance in Factory Overhead is computed as:
Particulars | Amount($) |
Actual Miscellaneous overhead | $36,800 |
Actual Indirect materials | 864 |
Actual Indirect labor | 12,000 |
Total actual factory overhead | 49,664 |
Factory overhead applied | 50,400 |
Over-applied overhead | $ (736) |
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