Chung Corporation Uses a Job Order Costing System

question 115

Essay

Chung Corporation uses a job order costing system.Five jobs were worked on during the current year.The predetermined overhead rate is 20% of direct labor costs.The following cost information is available (all materials and time ticket information applies to direct costs):
Part 1-Complete job cost sheets for each job.

Part 2-Identify the amounts of each of the following accounts at the end of the period
a.Work in Process________
b.Finished Goods________
c.Cost of Goods Sold________

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Definitions:

Goods Completed

Finished goods that have gone through the manufacturing process and are ready to be sold or distributed.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First In, First Out."

Cost Per Equivalent Unit

A measurement used in cost accounting to calculate the cost assigned to each unit produced, by considering the costs incurred at each stage of production.

Materials Used

The cost of raw materials and supplies that are consumed in the manufacturing process to produce goods.