11. Kline Inc.uses a job order costing system. Job 429 was partially completed and had $2,000 on its job cost sheet at the start of the month. Job 430 was partially completed and had $1,500 on its job cost sheet at the start of the month. In May, the following costs were incurred: Job 429 Job 430 Job 431 Direct Materials $2,500 3,500 4,400 Direct Labor $1,900 3,000 7,600 Job 429 and Job 431 were completed during May, and Job 431 was sold. Kline applies overhead using a cost driver rate of 160% of direct labor cost. Please post the appropriate entries to the job cost sheets (provide all three job cost sheets), and to the T accounts Work-in-Process Inventory and Finished Goods Inventory. The beginning balance in Finished Goods Inventory was zero. Be sure to show the ending balances in Work-in-Process Inventory and Finished Goods Inventory
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.
Please do not give solution in image format thanku
Step by step
Solved in 2 steps
