1. Job Order Costing
Chapter 17
Exercises

2. Job Order Costing In-Class Exercise (Form groups and work exercise):
Exercise No Page
E Allocating & adjusting manufacturing overhead

3. Allocating & Adjusting Manufacturing Overhead
Exercise E17-19:
Selective cost data for Antique Print Co. are as follows:
Estimated manufacturing overhead cost for the year…..$ 115,000 Estimated dir labor cost for the year……………………… ,875 Actual manufacturing overhead cost for the year……… ,000 Actual direct labor cost for the year……………………… ,000
Requirements:
(1) Compute the predetermined overhead rate per direct labor dollar.
(2) Prepare the journal entry to allocate overhead cost for the year.
(3) Use a T-account to determine the amount of under-allocated or over-allocated manufacturing overhead.
(4) Prepare the journal entry to adjust for the under-allocated or over-allocated manufacturing overhead.

4. Allocating & Adjusting Manufacturing Overhead

5. Allocating & Adjusting Manufacturing Overhead
Estimated overhead cost
Estimated dir.labor cost

6. Allocating & Adjusting Manufacturing Overhead

7. Allocating & Adjusting Manufacturing Overhead

8. Allocating & Adjusting Manufacturing Overhead

9. Allocating & Adjusting Manufacturing Overhead
End of Exercise

10. Preparing Job Order Costing Journal Entries
In-Class Exercise (Form groups and work exercise):
Exercise No Page
E Preparing job order costing journal entries
(Use the format, as reflected on the next slide, to complete this exercise)

11. Preparing Job Order Costing Journal Entries
General Journal
Date Description Debit Credit

12. Preparing Job Order Costing Journal Entries
Exercise E17-24:
Journalize the following transactions of Judy’s Sofas:
a. Incurred and paid website expenses, $2,900. b. Incurred manufacturing wages of $15,000, 60% of which was direct labor and 40% of which was indirect labor. c. Purchased raw materials on account, $14,000. d. Used in production: direct materials, $9, indirect materials, $4,500 e. Recorded manufacturing overhead depreciation on plant, $10,000; plant insurance (previously paid), $1,300; plant property tax, $4, (credit Property Tax Payable). f. Allocated manufacturing overhead to jobs, 250% of direct labor costs. g. Completed production on jobs with costs of $38,000. h. Sold inventory on account, $20,000; cost of goods sold, $10,000. i. Adjusted for over-allocation or under-allocation of overhead.

13. Preparing Job Order Costing Journal Entries

14. Preparing Job Order Costing Journal Entries

15. Preparing Job Order Costing Journal Entries
Manufacturing Overhead
b. 6, f , d , e. 10, e , e , i , , ,000

16. Preparing Job Order Costing Journal Entries
End of Exercise