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    Tutorial Job Costing CA

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    miranti d
    The document provides 4 examples of calculating manufacturing overhead rates and allocating overhead costs using different methods like actual overhead rate, budgeted overhead rate, and proration. It also shows the transfer of costs between work in process, finished goods, and cost of goods sold accounts before and after overhead is allocated.

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    © All Rights Reserved
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    Tutorial Job Costing CA

    Uploaded by

    miranti d
    23 views4 pages
    The document provides 4 examples of calculating manufacturing overhead rates and allocating overhead costs using different methods like actual overhead rate, budgeted overhead rate, and proration. It also shows the transfer of costs between work in process, finished goods, and cost of goods sold accounts before and after overhead is allocated.

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    The document provides 4 examples of calculating manufacturing overhead rates and allocating overhead costs using different methods like actual overhead rate, budgeted overhead rate, and proration. It also shows the transfer of costs between work in process, finished goods, and cost of goods sold accounts before and after overhead is allocated.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    23 views4 pages

    Tutorial Job Costing CA

    Uploaded by

    miranti d
    The document provides 4 examples of calculating manufacturing overhead rates and allocating overhead costs using different methods like actual overhead rate, budgeted overhead rate, and proration. It also shows the transfer of costs between work in process, finished goods, and cost of goods sold accounts before and after overhead is allocated.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Example 1

    DM 3,500
    DL AQ x AP 160 x 20 3,200
    MOH AQ x AP 160 x 32 5,120
    Total manufacturing cost 11,820

    Actual MOH rate


    = Actual MOH/Actual quantity of cost allocation base
    = 992,000/31,000
    32 per DLH

    Example 2
    DM 3,500
    DL AQ x AP 160 x 20 3,200
    MOH AQ x SP 160 x 30 4,800
    Total manufacturing cost 11,500

    Budgeted MOH rate


    = Budgeted MOH/Budgeted quantity of cost allocation base
    = 960,000/32,000
    30

    Example 3
    a) Usage of direct and indirect materials
    WIP control 60,000
    Materials control 60,000

    MOH control 3,000


    Materials control 3,000

    b) manufacturing labor incurred


    WIP control 54,000
    Cash control - direct labor 54,000

    c) manufacturing overhead cost incurred


    MOH control 76,000
    Cash control - Supervision and engineering salaries
    Cash control - Plant utilities
    Accumulated depreciation - Plant

    d) allocation of manufacturing overhead costs


    WIP control 81,000
    MOH allocated 81,000
    AQ x AP 2700 x 30
    e) cost of jobs completed and transferred to finished goods
    F/G control 180,000
    WIP control 180,000

    f) cost of goods sold


    COGS 175,000
    F/G control 175,000

    Before After
    WIP 195,000 15,000
    F/G 180,000 5,000
    COGS 175,000

    MOH control 79,000


    Moh allocated 81,000

    Example 4
    MOH allocated Percentage
    WIP 14,400 1.50% 480
    F/G 24,000 2.50% 800
    COGS 921,600 96.00% 30,720
    960,000

    Actual MOH 992,000


    Budgeted MOH 960,000
    Underallocated 32,000

    Proration method
    WIP control 480
    F/G control 800
    COGS 30,720
    MOH allocated 960,000
    MOH control 992,000

    Write off to COGS


    COGS 32,000
    MOH allocated 960,000
    MOH control 992,000
    50,000
    10,000
    16,000
    1)

    2) Budgeted MOH rate for machining department


    = Budgeted MOH/Budgeted quantity of cost allocation base
    = 9,065,000/185,000
    49 per MH

    Budgeted MOH rate for finishing department


    = Budgeted MOH/Budgeted quantity of cost allocation base
    2.02 x DL cost

    3) Machining Finishing
    AQ x SP AQ x SP
    = 140 x 49 = 1,250 x 2,02
    6,860 2,525 9,385 --> Total MOH allocated

    4) Machining Finishing Total


    DM 13,000 5,000 18,000
    DL 900 1,250 2,150
    MOH 6,860 2,525 9,385
    29,535
    Cost per unit 98.45

    5) Machining Finishing Total


    Actual MOH 10,000,000 7,982,000
    Budgeted MOH 9,800,000 8,282,000
    Under(over)allocated 200,000 (300,000) (100,000)

    AQ x SP

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