Restoration Ltd buys basic furniture units and creates period layouts in clients’ homes. The following transactions relate to jobs 801, 802 and 803 in the month of May. Prepare job cost records for each job.
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1 May |
G |
Bought 70 furniture units on credit from supplier, invoiced price being £204,000. The furniture units acquired consisted of two different grades. 50 units were of standard size at a total cost of £140,000 and 20 units were of king size at a total cost of £64,000. |
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1 May |
♣ |
Bought stain, varnish and paint at a cost of £30,000 paid in cash. The stain cost £12,000 while the varnish cost £14,000 and the paint £4,000. |
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2 May |
⊗ |
Returned to supplier one furniture unit damaged in transit, £2,800. The furniture unit returned was of standard size. |
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3 May |
† |
Furniture units issued to Finishing department. 40 standard size units were issued, together with 14 king size units. There were three separate jobs: references 801, 802 and 803. The standard size units were all for job 801 (Riverside Hotel); 10 king size units were for job 802 (Mountain Lodge); and the remaining 4 king size units were for job 803 (Hydeaway House). |
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4 May |
ø |
Issued stain, varnish and paint to Finishing department, £22,500. |
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14 May |
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Paid Finishing department employees’ wages £10,000. Wages were paid to 8 printing employees, each earning the same amount. |
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14 May |
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Paid security wages £350. Security wages were paid to one part time security officer. |
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16 May |
‡ |
Paid rent, rates and electricity in respect of Finishing department, £18,000 in cash. Payment for rent was £9,000, rates £5,000 and electricity £4,000. |
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28 May |
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Paid Finishing department employees’ wages £10,000. Wages were paid to the same 8 employees as on 14 May. |
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28 May |
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Paid security wages £350. Security wages were paid to the same security officer as on 14 May. |
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30 May |
♥ |
Employee records show that: 4 Finishing department employees worked all month on job 801; 2 Finishing department employees worked on job 802; and 2 Finishing department employees worked on job 803. |
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30 May |
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It is company policy to allocate production overheads in proportion to labour costs of each job. |
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30 May |
# |
Transferred all finished goods to finished goods stock. There remained no unfinished work in progress. |
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30 May |
≈ |
Riverside Hotel and Mountain Lodge took delivery of their goods. Hydeaway House will take delivery on 10 June. |