Scenario: Just4U Company uses a job order cost system. The following data summar

Question

Scenario:

Just4U Company uses a job order cost system. The following data summarize the operations related to production for the month of January 20xx.

a) Materials purchased on account:   $150,000

b) Materials requisitioned and Factory labor used:

JOB ORDER

MATERIALS

LABOR

601

$32,400

$19,300

602

$21,300

$15,200

603

$28,400

$17,500

604

$26,308

$16,395

605

$31,225

$18,422

General Factory Use

$5,300

$32,400

c) Factory overhead costs incurred on account:       $34,500

d) Depreciation of machinery and equipment:          $5,100

e) The factory overhead rate is $50 per machine hour.

Job Order

Machine Hours Used

601

320

602

225

603

300

604

285

605

312

f) Jobs completed:      #601, #603, #605

g) Jobs shipped and billed: #601: $113,200,   #605: $88,350

Task: Can you please detrmine the gross profits for the Just4U Company.

JOB ORDER

MATERIALS

LABOR

601

$32,400

$19,300

602

$21,300

$15,200

603

$28,400

$17,500

604

$26,308

$16,395

605

$31,225

$18,422

General Factory Use

$5,300

$32,400

Explanation / Answer

Calculation of material at the end

Profit & Loss Account Particulars Debit Particulars Credit Material (raw material) 150000 Sales Job 601 113200 Cost of goods sold 74600 Job 605 88350 Closing Stock Finished Goods : Job 603 60900.00 Gross Profit 150020 Work IN Progress: Job 602 47750.00 Job 604 56953.00 Material 5067.00 Manufacturing Overhead Control 2400.00 Total 374620.00 Total 374620.00

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