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CoursHeroTranscribedText: PROBLEM 5 JB Manufacturing Co. uses Job Order Costing System to accumulate production costs. At the Beginning of the year, the balances of the inventory accounts are as follows: Raw Materials 168,000 Work in Process Inventory 210,000 Job 101 105,000 Job 102 105,000 Finished Goods Inventory 182,000 Job 005 85,000 Job 006 97,000 The Summaries of transactions for the year are as follows: a. Raw Materials costing P826,000 were purchased on account. b. Materials issued to production, 785,000 Distributed as Follows Job 101 180,000 Job 103 150,000 Job 102 125,000 Job 104 205,000 Indirect Balance Job 105 95,000 c. Heat, Light, and power for factory plant for the year was P116,000 d. Depreciation for the factory plant for the year 190,000 e. Marketing and Administrative expenses, P250,000 f. F. Production wages for the year was P1,250,000 of which 20% is for indirect laborers. The direct wages were distributed as Job 101- 15%, Job 102-20%, Job 103- 25%, Job 104-30%, Job 105-10%; g. Employer's share for SSS, Medicare and PAGIBIG were estimated to be 20% of the production wages. h. 80% of direct labor cost was applied as overhead to the jobs i. Advertising Costs for the year was P56,000 j. Expired Insurance was P50,000 of which. 80% is for the Factory k. The Finished Goods stock at the beg of the year were sold on account at cost plus 40% mark up 1. Misc. Factory overhead cost incurred were P50,000 m. Only job 105 was unfinished at the end of the year. Job 103 and 104 were delivered to the customer at cost plus 40% mark up on cost

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