Assignment 1 acct 322

ABC Corporation applies job order costing system and the information drawn from its costing records as follows :( 2 Marks)

Particular	Job 100	Job 200	Total
Direct material per unit	50 SR	75 SR	-
Direct labour rate per hour	15 SR	20 SR	-
Direct labour hour per unit	2	4	-
Yearly estimated direct labour hour	-	-	20,000 hours
Yearly estimated fixes overhead	-	-	100,000 SR
Overhead variable cost per direct hour	-	-	5 SR
Yearly estimated machine hours			5,000 hours

During January 2021, the corporation produced and sold 3000 units from job order no. 100 and 3500 units from job order no. 200 respectively. The corporation uses normal costing system that charge applied overhead to jobs.

Required:

1. Compute total product costs for the two jobs.
2. Pass journal entries to record cost flow, namely direct material, direct labour and overhead to work in process inventory