Shoe Glass Manufacturing Company castings and other glass parts to various customers as per order. The Company uses Job Order Costing system. For the current year 2021, the company estimated that it would work 400,000 machine- hours and will incur P2,800,000 in manufacturing overhead cost. The company had no work in process at the beginning of the year. The entire month of January was spent on Job Order 777, which was an order for 4,000 window glass parts. Cost data for January as follows: a. Raw materials purchased on account, P300,000 b. Raw materials requisitioned for production, P270,000 (90% direct and 10% indirect). c. Labor cost incurred in the factory, P190,000, of which P100,000 was direct and the balance indirect cost. d. Depreciation recorded on factory equipment is P68,000. e. Other manufacturing overhead costs incurred, P55,000, 50% of which paid and the balance on account. f. Manufacturing overhead cost was applied to production on a basis of 34,000 machine-hours worked during January. g. The completed job was moved into the finished goods warehouse on January 31 to await delivery for the customers. (Assuming that all work in process has been completed)
Shoe Glass Manufacturing Company castings and other glass parts to various customers as per order. The Company uses Job Order Costing system. For the current year 2021, the company estimated that it would work 400,000 machine- hours and will incur P2,800,000 in manufacturing overhead cost. The company had no work in process at the beginning of the year. The entire month of January was spent on Job Order 777, which was an order for 4,000 window glass parts. Cost data for January as follows: a. Raw materials purchased on account, P300,000 b. Raw materials requisitioned for production, P270,000 (90% direct and 10% indirect). c. Labor cost incurred in the factory, P190,000, of which P100,000 was direct and the balance indirect cost. d. Depreciation recorded on factory equipment is P68,000. e. Other manufacturing overhead costs incurred, P55,000, 50% of which paid and the balance on account. f. Manufacturing overhead cost was applied to production on a basis of 34,000 machine-hours worked during January. g. The completed job was moved into the finished goods warehouse on January 31 to await delivery for the customers. (Assuming that all work in process has been completed)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Attached herewith is the picture;
Prepare the T- accounts for the actual Factory
Transcribed Image Text:Shoe Glass Manufacturing Company castings and other glass parts to various
customers as per order. The Company uses Job Order Costing system. For the
current year 2021, the company estimated that it would work 400,000 machine-
hours and will incur P2,800,000 in manufacturing overhead cost.
The company had no work in process at the beginning of the year. The entire
month of January was spent on Job Order 777, which was an order for 4,000
window glass parts. Cost data for January as follows:
a. Raw materials purchased on account, P300,000
b. Raw materials requisitioned for production, P270,000 (90% direct and 10%
indirect).
c. Labor cost incurred in the factory, P190,000, of which P100,000 was direct
and the balance indirect cost.
d. Depreciation recorded on factory equipment is P68,000.
e. Other manufacturing overhead costs incurred, P55,000, 50% of which paid
and the balance on account.
f. Manufacturing overhead cost was applied to production on a basis of
34,000 machine-hours worked during January.
g. The completed job was moved into the finished goods warehouse on
January 31 to await delivery for the customers. (Assuming that all work in
process has been completed)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education