Name: Class: Date:

MANAGERIAL ACCOUNTING - (FALL SEMESTER 2017)

ASSESSMENT NUMBER 1
JOB-ORDER COSTING

Osbourne Company utilizes a Job-Order Costing Systems. Data for the three (3)
jobs that were in process during the month of August of the current year are as
follows:
_____________________ Job 220_____Job 221____Job 222
Balance August 1 $12,640 $16,920 $ 0
Direct Materials $ 8,000 $10,500 $24,320
Direct Labor $16,250 $18,600 $28,890
Direct Labor Hours 800 600 1,000

Manufacturing Overhead is applied to jobs in production at the rate of $12 per

Direct Labor Hour. At the end of the month of August of the current year, Job
220 and Job 221 were completed and transferred out to Finished Goods
Inventory. Job 218 (completed in the month of July of the current year) and Job
220 were sold during the month of August of the current year. Job 222 remained
in process at the end of the month of August of the current year. On August 1 of
the current year, the balance in Finished Goods Inventory was $56,570
(consisting of Job 218 for $31,760 and Job 219 for $24,810).
Osbourne Company prices its jobs at the job's cost plus forty percent (40%)
markup. During the month of August of the current year, Variable Marketing
(Selling) Expenses were six percent (6%) of Sales and Fixed Marketing (Selling)
Expenses were $6,000 and Administrative Expenses were $8,200.

Required
1. Prepare Job-Order Cost Sheets for all jobs in process during the month of August
of the current year.
2. Compute the balance in Work-In-Process Inventory at the end of the month of
August of the current year.
3. Compute the balance in Finished Goods Inventory at the end of the month of
August of the current year.
4. Compute Cost of Goods Sold for the month of August of the current year.
5. Compute Net Income (Operating Income) for Osbourne Company for the month
of August of the current year.
INSERT THE REQUIRED ABOVE INFORMATION IN THE TEMPLATE PRESENTED
BELOW.

1. Job 220 Job 221 Job 222

Balance, August 1 $ $ $
Direct Materials
Direct Labor
Applied Manufacturing Overhead
Total $ $ $

2. Work-In-Process Inventory - August 31 $

3. Finished Goods Inventory:

Beginning Balance $
Completed Goods (Transferred In)
Sold (Transferred Out)
Ending Balance - August 31 $

4. Cost Of Goods Sold:

Job 218 $
Job 220
Ending Balance - August 31 $

5.
Sales $
Cost Of Goods Sold
Gross Margin (Gross Profit)
Less:
Variable Marketing (Selling) Expenses
Fixed Marketing (Selling) Expenses
Administrative Expenses
Net Income (Operating Income) $
PROCESS COSTING

Annette Company manufactures a pineapple soda in three (3) departments:

Baking, Blending and Packaging. Annette Company uses the Weighted-Average
Method for computing Equivalent Units Of Production (EUP). The following are
cost and production (in gallons) data for the Baking Department for the month of
August of the current year:
Production
Units In Work-In-Process Inventory August 1 30,000
Units Completed And Transferred Out 60,000
Units In Work-In-Process Inventory August 31 20,000
(Twenty Percent (20%) Complete)
Costs
Work-In-Process Inventory August 1 $ 92,800
Costs Added During The Month Of August $377,600

Required
Prepare a Production Report for the Baking Department.

INSERT THE REQUIRED ABOVE INFORMATION IN THE TEMPLATE PRESENTED BELOW.

 Baking Department
Production Report
For the Month of August
(Weighted Average Method)

UNIT INFORMATION

Physical Flow:

Units To Account For: Units Accounted For:

Units In Beginning WIP Units Completed

Units Started Units In Ending WIP

Total Units To Account For Total Units Accounted For

Equivalent Units:

Units Completed

Units In Ending WIP

Total Equivalent Units

COST INFORMATION

Costs To Account For:

Costs In Beginning WIP $

Costs Added By Department

Total Costs To Account For $

Cost Per Equivalent Unit $

Transferred Ending

Out WIP Total

Costs Transferred Out $ - $

Cost In Ending WIP - $

Total Costs Accounted For $ $ $