QUESTION 1

LAWRENCE METAL WORKS INC.

PRODUCTION LOSSES IN JOB ORDER
GENERAL JOURNAL
Account Title

1- Spoiled Good Inventory (200*1.75)

Factory Overhead Control
Work in Process

2- Account Recievable
Scrap Sales
Spoiled Good Inventory

QUESTION 2
GRANT FOUNDRY INC.
PRODUCTION LOSSES IN JOB ORDER
GENERAL JOURNAL
Account Title

1- Spoiled Good Inventory (200*15)

Factory Overhead*
Cost of Goods Sold
Work in Process

Account Recievable
Sales**

2- Spoiled Good Inventory (200*15)

Cost of Goods Sold
Work in Process

Account Recievable
 Sales (87000*1.4)

EXPLANATION
* TC/TU= 90,000/5000=18
18*200=3600, 3600-3000= 600
**COGS*140%= Sales
864000*140= 120960

QUESTION 3
WYOMING CABINET COMPANY
PRODUCTION LOSSES IN JOB ORDER
GENERAL JOURNAL
Account Title

1- Factory Overhead Control

Material (100*2)
Payroll (0.5*100*12)
Applied Factory Overhead (100*0.5*24)

Cost of Goods Sold

Work in Process

Account Recievable
Sales (200000*150%)

2- Work in Progress
Material (100*2)
Payroll (0.5*100*12)
Applied Factory Overhead (100*0.5*24)

Cost of Goods Sold

Work in Process

Account Recievable
Sales (202,000*150%)
ON 1
AL WORKS INC.
ES IN JOB ORDER
OURNAL
Amount (Rs)
Debit Credit

350
1,450
1,800

900
550
350

ON 2
NDRY INC.
ES IN JOB ORDER
OURNAL
Amount (Rs)
Debit Credit

3,000
600
86,400
90,000

120,960
120,960

3,000
87,000
90,000

121,800
 121,800

ATION

ON 3
NET COMPANY
ES IN JOB ORDER
OURNAL
Amount (Rs)
Debit Credit

2,000
200
600
1,200

200,000
200,000

300,000
300,000

2,000
200
600
1,200

202,000
202,000

303,000
303,000
 QUESTION 4
BILLINGSLEY COMPANY
Cutting Department
Cost Of Production Report
Spoiled Units Treatment
1. Quantity schedule
a) Beginning inventory
Units started for production
Units accounted for

Units completed and transferred to next department

Units still in proces
spoiled units
Units accountable for

2. Equivalent units of production

Units completed and transferred to next department

Units in process
DM(4000*100%)
DL(4000*60%)
FOH(4000*60%)
equivalent units of spoiled units

3. Cost to Account for:

Cost of beginning Inventory
DM
DL
FOH
Cost added by department
DM
DL
FOH
4. 4.cost accountable for
Units transferred to next dept (18,000*3)
Spoilage charged to FOH :
material (3000*100%*1.5)
Labor (3000*0.90*0.5)
Overhead (3000*0.90*1)
Ending units in process :
DM(4000*100%*1.5)
DL(4000*60%*0.5)
FOH(4000*60%*1)

Total cost the department is accountable for

 QUESTION 4
LINGSLEY COMPANY
Cutting Department
t Of Production Report
oiled Units Treatment

5,000
20,000
25000

18,000
4,000
3,000
25000

DM DL FOH
18000 18000 18000

4000
2400
2400
3000 2700 2700
25000 23100 23100

615
366
550
Total cost(a) EU(b) Per unit (a/b)
37,500 25000 1.5
11,550 23100 0.5
23,100 23100 1.0

72,150 3
 54000

4500
1350
2700
8550
6000
1200
2400
9600

72150
 QUESTION 4
BILLINGSLEY COMPANY
Assembling Department
Cost Of Production Report
Spoiled Units Treatment
1. Quantity schedule
a) Beginning inventory
Units srecieved for production
Units accounted for

Units completed and transferred to next department

Units still in proces
spoiled units
Units accountable for
2. Equivalent units of production
Units completed and transferred to next department

Units in process
DM(4000*100%)
DL(4000*25%)
FOH(4000*25%)
equivalent units of spoiled units (100%)
Total EU

3. Cost to Account for:

Cost of beginning Inventory
DM
DL
FOH
COST FROM PRECEEDING DEPARTMENT
Cost added by department
DM
DL
 FOH
COST FROM PRECEEDING DEPARTMENT

4. cost accountable for

Units transferred to FINISHED GOODS (15*17000)
TRANSFERRED TO SPOILED GOOD INV (1000*3)
Spoilage charged to FOH
cost of salvage units(1000*15)
less salvage value
Ending units in process :
cost from preccedding department (4000*3)
DM(4000*80%*9.5)
DL(4000*20%*1)
FOH(4000*20%*1.5)

Total cost the department is accountable for

TOTAL COST

DM
DL
FOH
COST FROM PRECEEDING DEPARTMENT

BILLINGSLEY COMPANY
PRODUCTION LOSSES IN JOB ORDER
GENERAL JOURNAL
Account Title

Work in Process- Assembling Departmet

Factory Overhead
Work in Process- Cutting Departmet

Finished Good Inventory

Spoiled Good Inventory
Factory Overhead
Work in Process- Assembling Departmet
 QUESTION 4
LINGSLEY COMPANY
ssembling Department
st Of Production Report
poiled Units Treatment

4,000
18,000
22000

17,000
4,000
1,000
22000
DM DL FOH
17,000 17,000 17,000

3200
800
800
1000 1000 1000
21200 18800 18800

58,418
38,028
3,356
5,034
12,000
Total cost(a) EU(b)
163,372 21200 9.5
15,444 18800 1
 23,166 18800 1.5
54,000 22,000 3
314,400 15

255000
3000

15000
3000 12000

12000
30400
800
1200
44400

314400

TOTAL COST
Beg Inventory (a) Ending Inventory (b) TC
38028 163372 201400
3356 15444 18800
5034 23166 28200
12000 54000 66000

EY COMPANY
SSES IN JOB ORDER
L JOURNAL
Amount (Rs)
Debit Credit

54,000
8,550
62,550

255,000
 3,000
12,000
270,000
 QUESTION 4
HADENVILLE TOOL COMPANY
Fabricating Department
Cost Of Production Report
Spoiled Units Treatment
1. Quantity schedule
a) Beginning inventory
Units started for production
Units accounted for

Units completed and transferred to next department

Units still in proces
spoiled units
Units accountable for

2. Equivalent units of production

Units completed and transferred to next department

Units in process
DM(500*100%)
DL(500*40%)
FOH(500*40%)
equivalent units of spoiled units

LESS EU in terms of Beginning Inventory

DM
DL
Overhead
Total EU
3. Cost to Account for:
Cost of beginning Inventory
DM
DL
 FOH
Cost added by department
DM
DL
FOH

4-Cost Accountable for

Cost Transferred Out:
Cost from Bigining Inventory
Cost to Complete Beginning Inventory
Material
Labor (2000*30%)
Overhead(2000*30%)

Units transferred to next dept

Spoilage Charged to FOH
Material
Labor
Overhead
Ending units in process :
DM(1500*100%)
DL(1500*40%)
FOH(1500*40%)

Total cost the department is accountable for

 QUESTION 4
NVILLE TOOL COMPANY
bricating Department
t Of Production Report
poiled Units Treatment

2,000
9,000
11000

9,000
1,500
500
11000

DM DL FOH
9,000 9000 9000

1500
600
600
500 300 300
11000 9900 9900

2000
1400
1400
9000 8500 8500

1,900
340
 1,020
Total cost(a) EU(b) Per unit (a/b)
9,180 9000 1.02
2,125 8500 0.25
6,375 8500 0.75

20,940 2.02

3,260
EU EU cost
0 1.02 0
600 0.25 150
600 0.75 450

7,000 2.02 14140

500 1.02 510

300 0.25 75
300 0.75 225

1,500 1.02 1530

600 0.25 150
600 0.75 450

20940
 QUESTION 5 (7-6)
HADENVILLE TOOL COMPANY
Finishing Department
Cost Of Production Report
Spoiled Units Treatment
1. Quantity schedule
a) Beginning inventory
Units srecieved for production
Units accounted for

Units completed and transferred to next department

Units still in proces
spoiled units
Units accountable for

2. Equivalent units of production

Units completed and transferred to next department

Units in process
DM(2000*100%)
DL(2000*60%)
FOH(2000*60%)
equivalent units of spoiled units

Less Begining Inventory in terms of EU

DM
Labor
Overhead
 Total equivalent units
3. Cost to Account for:
Cost of beginning Inventory
DM
DL
FOH
COST FROM PRECEEDING DEPARTMENT
Cost added by department
COST FROM PRECEEDING DEPARTMENT
DM
DL
FOH

4-COOST ACCOUNTABLE FOR

Transferred to Finished Goods (6900*4.2)
from beginning inventory:
cost to completet this period
DM(3000*0*1.2)
DL(3000*60%*0.4)
FoH (3000*60%*0.6)

Spoiled Good Inventory(100*1)

Spoilage charged to spiled good inventory

cost of salvage units (100*4.2)
less salvage value (100*1)
Ending units in process :
cost from preccedding department (2000*100*2)
DM(2000*100%*1.2)
DL(2000*60%*0.4)
FOH(2000*60%*0.6)
 Total cost the department is accountable for

HANDENVILLE TOOL COMPANY

PRODUCTION LOSSES IN JOB ORDER
GENERAL JOURNAL
Account Title

Work in Process- Finishing Departmet

Factory Overhead Control
Work in Process- Fabricating Departmet

Finished Good Inventory

Spoiled Good Inventory
Factory Overhead
Work in Process- Assembling Departmet
 QUESTION 5 (7-6)
NVILLE TOOL COMPANY
inishing Department
t Of Production Report
oiled Units Treatment

3000
9,000
12000

9,900
2,000
100
12000

DM DL FOH
9900 9900 9900

2000
1200
1200
100 100 100
12000 11200 11200

3000
1200
1200
 9000 10000 10000

10,900
3,500
520
780
6,100
Total cost(a) EU(b)
18,000 9000 2
10,800 9000 1.2
4,000 10000 0.4
6,000 10000 0.6
49,700 4.2

28980
10,900

0
720
1080
1800
100

420
100 320

4000
2400
480
720 7600
 49700

E TOOL COMPANY
OSSES IN JOB ORDER
L JOURNAL
Amount (Rs)
Debit Credit

18,000
810
18,810

41,680
320
100
42,100