Job costing, journal entries. G0 minutes) The Editions Sorbonne is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the Editions Sorbonne were an outside business enterprise. The Editions Sorbonne 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 manufacturing labour) and one indirect-cost pool Gmanufacturing overhead, allocated on the basis of direct-labour costs).

The following data Gin thousands) pertain to 2000: lo1

REQUIRED 1. Present an overview diagram of the job-costing system at the Editions Sorbonne.

2. Prepare general journal entries to summarise 2000 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 stocks, Cost of Goods Sold, Manufacturing Overhead Control and Manufacturing Overhead Allocated.
For more details concerning these data, see Problem 3-20.

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Direct materials and supplies purchased on account Direct materials used Indirect materials issued to various production departments Direct manufacturing labour Indirect manufacturing labour incurred by various departments Depreciation on building and manufacturing equipment Miscellaneous manufacturing overhead" incurred by various departments (ordinarily would be detailed as repairs, photocopying, utilities, etc.) Manufacturing overhead allocated at 160% of direct manufacturing labour costs Cost of goods manufactured Revenues Cost of goods sold Stock, 31 December 1999 (not 2000): Materials control Work-in-progress control Finished goods control EUR 8,000 7,100 1,000 13,000 9,000 4,000 5,500 ? 41,200 80,000 40,200 1,000 600 5,000 "The term manufacturing overhead is not used uniformly. Other terms that are often encountered in printing companies include job overhead and shop overhead.