For Clarification:

Job 101 Job 102 Job 103

Direct Materials 1,200ft. 800ft. 450ft.

Used

Direct Labor 100 hrs. 60 hrs. 10 hrs.

Hours

Machine Hours 20 hrs. 15 hrs. 50 hrs.

Units Produced 500 units 1,000 units 20 unit

Requirement: Prepare the necessary journal entry only.

ILLUSTRATIVE PROBLEM: Annie Furnitures has 3 jobs processed in the month of September 2020, the following information are necessary for costing purposes: JOB 101 JOB 102 JOB 103 Direct Materials used 1,200 Ft. 800 Ft. 450 Ft. Direct labor hours 100 hours 60 hours 10 hours Machine Hours 20 hours 15 hours 50 hours Units produced 500 units 1,000 units 20 units Additional information: a. Direct material cost is 32 pesos per ft. b. Labor cost is 20 per hour. c. Overhead cost is estimated using machine hours. Total Estimated overhead is 4,000,000 total machine hours is 4,000. d. the markup policy of Annie is 60% of the cost. e. Only 102 remained unfinished at the end of september. Requirements: a. Compute for the total manufacturing cost and per unit cost of the finished jobs. b. how much is the WIP at the end of September. c. Compute for the total potential sales of the finished jobs. d. Prepare the necessary Journal Entries