How to prepare a job sheet for the given transactions?

Finance ManagementBanking & FinanceGrowth & Empowerment

Problem

Prepare a job sheet using the transactions given below −


Amount ($)

Raw materials750000

Work in progress (job A)310000Utility costs50000
Direct labour costs125000Advertising expenses310000
Indirect labour costs202000Travel expenses40000
Raw materials675000Insurance15000
Work in progress (Job B)295000Finished goods1089700
Direct labour costs98000Cost of goods sold963000
Indirect labour costs103000Sales2058000
Manufacturing overheads115800
9564500
Administrative expenses105000Carrying balances
Sales commissions195000Raw materials30000
Manufacturing overheads220000Work-in-progress88000
Depreciation (equipment)45000Cost of goods sold28000



146000

Solution

The job sheet for the respective transactions is as follows −

Raw materialsManufacturing overheads
Carrying balance30000Work in progress (job B)295000
Used in next year750000Depreciation overhead220000

780000Sales commissions195000
Work in progress (job A)675000Utilities overhead50000
Balance105000Insurance overhead15000



775000


Work in progress (A+B)605000


Balance170000
Work in progressNet operating income
Carrying balance88000Sales2058000
Work in progress (job A)310000Cost of goods sold
Direct labour costs125000Carrying balance28000
Indirect labour costs202000Cost of goods sold in next year963000
Work in progress (job B)295000
991000
Direct labour costs98000Gross profit1589000
Indirect labour costs103000Sales commissions(195000)

1221000Administrative expenses(105000)
Finished goods1089700Advertising expenses(310000)
Balance131300Travel expense(40000)


Insurance(15000)



924000
raja
Updated on 17-May-2022 14:51:46

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