You have just begun your job at AKP Manufacturing Co. The company produces special
keyboards made to customer specifications. During August, AKP incurred the following
manufacturing costs: direct materials, $28,019
; direct labour, $15,276.75 and applied factory
overhead, $9,854.50. The following data pertain to these costs:
Summary of Direct Material Requisitions
Cost per Unit
Total Direct Materials
Summary of Direct Labour Time Tickets
Rate per Hour
Total Direct Labour
Overhead application rates for Dept.1 are $4 per direct labour hour, and for Dept. 2 are 175%
of direct labour cost. AKP had no beginning work in process for August. Job 9010
, which cost
$14,190.18 to manufacture, was completed in July and was sold on ac
count in August for
he jobs begun in August, Job 901
1 was completed and sold on account for $24,000, Jobs
9012 and 9014 were co
mpleted but not sold,
Job 9013 was
still in process.
As cost accountant for this company, you have
been asked to prepare job cost sheets for
each of the four jobs started in August. Use examples in your textbook as a guide.
On a new tab in your worksheet, p
repare journal entries for the month of August
apply the total direct materials, total direct labour and total manufacturing overhead
to the jobs
(use the numbers in the first paragraph of the question)
Complete jobs 9011, 9012 and 9014.
Sell job 9010 and 9011.
Set up T
-accounts for Work
-in-progress, Finished Goods, Cost of Goods Sold and Sales.
entries to the appropriate accounts and
balance each account.
Using the job cost sheets
, prepare a supporting schedule by job number showing the cost
of ending work in process, finished goods and cost of goods sold.
total in the
AKP’s management is very concerned about the cost of materials on its jobs. In
particular, materials costs should be under 55% of total costs. For example
, the materials
cost on Job 9010
37.6% of total costs. On
create a pie graph
showing the cost components for each job worked on in August. Did AKP maintain good
cost control on each of
its jobs? Explain.
If you need a refresher
for creating pie charts in
, here is a link to a 7 minute YouTube
video that wi
ll get you started.