Exercise 6: Job Order Costing - Journal Entries and Simple Cost Sheet Based on the following information, you are required to prepare the following: a. Journal entries b. T-account for work in process c. Simple cost sheets d. Proof of work in process inventory. end The Reuben Appliances Corp. started its operations in 200B. It uses the job order costing method and has adopted the voucher system to effectively control the flow of resources. inventories and payables. The transactions for the first quarter of the year are as follows: 1) Materials purchases on account. F 50.000 2) Materials issued: Job Order No. B-001 B-002. B-003. P 7,500 13.000 6.250 3) Indirect materials issued. P 5.250 4) Payroll charges include indirect labor of P7.800. Direct labor costs are as follows: Job Order No. B-001. B-002... B-003. 5,300 8,000 4,750 5) Factory overhead is charged to production at P 3 per machine hour. Machine hours utilized are as follows: Job Order No. B-001..... B-002. B-003. 1,200 machine hours 2.050 machi.ic hours 1.400 machine hours
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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