How to prepare a job sheet for the given transactions?



Problem

Prepare a job sheet using the transactions given below −


Amount ($)

Raw materials 750000

Work in progress (job A) 310000 Utility costs 50000
Direct labour costs 125000 Advertising expenses 310000
Indirect labour costs 202000 Travel expenses 40000
Raw materials 675000 Insurance 15000
Work in progress (Job B) 295000 Finished goods 1089700
Direct labour costs 98000 Cost of goods sold 963000
Indirect labour costs 103000 Sales 2058000
Manufacturing overheads 115800
9564500
Administrative expenses 105000 Carrying balances
Sales commissions 195000 Raw materials 30000
Manufacturing overheads 220000 Work-in-progress 88000
Depreciation (equipment) 45000 Cost of goods sold 28000



146000

Solution

The job sheet for the respective transactions is as follows −

Raw materials Manufacturing overheads
Carrying balance 30000 Work in progress (job B) 295000
Used in next year 750000 Depreciation overhead 220000

780000 Sales commissions 195000
Work in progress (job A) 675000 Utilities overhead 50000
Balance 105000 Insurance overhead 15000



775000


Work in progress (A+B) 605000


Balance 170000
Work in progress Net operating income
Carrying balance 88000 Sales 2058000
Work in progress (job A) 310000 Cost of goods sold
Direct labour costs 125000 Carrying balance 28000
Indirect labour costs 202000 Cost of goods sold in next year 963000
Work in progress (job B) 295000
991000
Direct labour costs 98000 Gross profit 1589000
Indirect labour costs 103000 Sales commissions (195000)

1221000 Administrative expenses (105000)
Finished goods 1089700 Advertising expenses (310000)
Balance 131300 Travel expense (40000)


Insurance (15000)



924000
Updated on: 2022-05-17T14:51:46+05:30

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