Job costing, journal entries. The University of Toronto Press is wholly owned by the university. It performs

Question:

Job costing, journal entries. The University of Toronto Press is wholly owned by the university. It performs the bulk ofits work for other university departments, which pay as though the Press were an outside business enterprise. The Press also publishes and maintains a stock of books for general sale. A job-costing system is used to cost each job. There are two direct-cost categories (direct materials and direct manufactur¬

ing labour) and one indirect-cost pool (manufacturing overhead, allocated based on direct labour costs). JOB COSTING 141 The following data (in thousands) pertain to 2007:

Direct materials and supplies purchased on account $ 960 Direct materials used 852 Indirect materials issued to various production departments 120 Direct manufacturing labour 1,560 Indirect manufacturing labour incurred by various departments 1,080 Amortization on building and manufacturing equipment 480 Miscellaneous manufacturing overhead* incurred by various departments

(ordinarily would be detailed as repairs, photocopying, utilities, etc.) 660 Manufacturing overhead allocated at 160% of direct manufacturing labour costs ?

Cost of goods manufactured 4,944 Revenues 9,600 Cost of goods sold 4,824 Inventories, December 31, 2006:

Materials control 120 Work-in-process control 72 Finished goods control 600

*The term manufacturing overhead is not used uniformly. Other terms that are often encountered in printing companies includtjob overhead and shop overhead.

Required 1. Present an overview diagram ofthe job-costing system at the University ofToronto Press.

2. Prepare general journal entries to summarize 2007 transactions. As your final entry, dispose of the year-end over- or underallocated manufacturing overhead as a direct write-off to Cost of Goods Sold. Number your entries. Explanations for each entry may be omitted.

3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 9780131971905

4th Canadian Edition

Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall

Question Posted: