The job-order cost sheet for a special product is as follows: job number:711 Date started: 05/06 Date completed:06/15 Raw Materials Direct Labor Date Type Cost Qty. Amount rate Hours Amount 26-May 130 £30 6 £180 £18 5 £90 15-Jun 248 10 20 200 15 10 150 £380 15 £240 Total direct materials £380 Total direct labor 99 Overhead(5 direct labor hours @£10/hours) 150 Total job cost 770 Overhead is allocated based on direct labor hours (DLH). The parts were in the Raw Materials inventory before being used on Job 711. The product is sold on July 10. Identify the cost flows on May 26, June 15, and July 10.

Cost flows: On 05/26: €180 from Raw Materials inventory to Work-in-Process €90 from Labor to Work-in-Process €50 from Overhead to Work-in-Process for overhead related to direct labor hours (5 DLH × €10/DLH) On 06/15: €200 from Raw Materials inventory to Work-in-Process €150 from Labor to Work-in-Process €100 from Overhead to Work-in-Process for overhead related to direct labor hours (10 DLH × €10/DLH) When finished: €770 from Work-in-Process to Finished Goods On 07/10: €770 from Finished Goods to Cost of Goods Sold

Question 9.2: The job-order cost sheet for a special product is as follows...

Management Accounting in a Dynamic Environment

The job-order cost sheet for a special product is as follows:

job number:711
Date started: 05/06
Date completed:06/15

	Raw Materials			Direct Labor
Date	Type	Cost	Qty.	Amount	rate	Hours	Amount
26-May	130	£30	6	£180	£18	5	£90
15-Jun	248	10	20	200	15	10	150
				£380		15	£240
				Total direct materials			£380
				Total direct labor			99
				Overhead(5 direct labor hours @£10/hours)			150
				Total job cost			770

Overhead is allocated based on direct labor hours (DLH). The parts were in the Raw Materials inventory before being used on Job 711. The product is sold on July 10. Identify the cost flows on May 26, June 15, and July 10.

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Cost flows:

On 05/26:	€180 from Raw Materials inventory to Work-in-Process
	€90 from Labor to Work-in-Process
	€50 from Overhead to Work-in-Process for overhead related to direct labor hours (5 DLH × €10/DLH)
On 06/15:	€200 from Raw Materials inventory to Work-in-Process
	€150 from Labor to Work-in-Process
	€100 from Overhead to Work-in-Process for overhead related to direct labor hours (10 DLH × €10/DLH)
When finished:	€770 from Work-in-Process to Finished Goods
On 07/10:	€770 from Finished Goods to Cost of Goods Sold