Case 1

Foster Manufacturing uses a job order cost accounting system. On April 1, the company has Work in Process Inventory of Rp. 7,600 M and two jobs in process: Job No. 121, Rp.3,600 M, and Job No. 122, Rp4,000 M. During April, the work in process required the direct materials, factory labor as follows,

Job			Materials used (In Million)				Direct Labor cost (In million)
Job No.	121			1,200				$2,100
	122			1,700				2,200
	123			2,400				2,900

Foster applies manufacturing overhead to jobs at an overhead rate of 70% of direct labor cost. Job No. 121 and 122 are completed during the month. Job no.121 is sold at 40 above the cost

Required:

1. Prepare journal entries to record the assignment of raw materials, direct labor , and factory overhead to work in process for each job.
2. Prepare journal entries to record the completion of Job No. 121 and job No.122
3. Prepare journal entry to record the sales with perpetual method (all sales are made in cash)

Case 2

Massey Corporation uses a process cost system and the weighted-average cost flow assumption. Production begins in the Fabricating Department where materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. On March 1, the beginning work in process inventory consisted of 20,000 units which were 60% complete and had a cost of $190,000, $145,000 of which were materials costs. During March, the following occurred:

Materials added $305,000

Conversion costs incurred $120,000

Units completed and transferred out in March 50,000

Units in ending work in process March 31 (20% complete) 25,000

Instructions

Prepare a production cost report for The Fabricating Department for the month of July, using the weighted-average method.