# Job Order Costing Problems

Problem 1: Dalton Manufacturing uses a job order costing system. On May 1, the company had a balance in the Work in Process Inventory account of \$3200 (all direct materials). There were two jobs in process--Job 429 with DM of \$2000 and Job 430 with DM of \$1200. During the month of May, the following costs were incurred.

Job Number
Materials
Labor
429
\$2,500
\$2,400
430
3,500
3,000
431
4,400
7,600
General Use (MO)
800
1,200
Totals
\$11,200
\$14,200

Dalton applies overhead at the rate of 90% of Direct Labor Cost. Job 429 was completed during the month.

Required:

1. Prepare journal entries to record the requisitioning of direct materials, the labor costs, and the assignment of manufacturing overhead to jobs. Also record the completion of Job 429.

2. Prepare the job cost sheets and prove the agreement of Work in Process with the job cost sheets.

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Problem 2: Tolbert Printing Company uses a job order costing system. The following data summarizes the operations for the first quarter of the year.

a. Materials purchased on account \$192,000, and manufacturing wages incurred \$87,300.

b. Materials requisitioned and factory labor used by job:

Job Number
Materials
Labor
A20
\$32,240
\$18,000
A21
42,920
22,000
A22
36,100
15,000
A23
39,270
25,000
General Use (MO)
4,470
7,300
Totals
\$155,000
\$87,300

c. Manufacturing Overhead costs incurred on account = \$39,500.

d. Depreciation on Equipment = \$14,550.

e. Predetermined Overhead Rate = 70% of direct labor cost.

f. Jobs completed during the quarter: A20, A21, and A23.

Required:

1. Prepare job cost sheets and total the job costs for each job.

2. Prepare journal entries to record all events described above.

3. Reconcile WIP with the remaining job cost sheets in process.