25. Bishop Corporation uses normal process costing (weighted average method) and applies manufacturing overhead at a rate of 70% of direct labor costs. Bishop has two departments: Molding and Assembly (beginning work-in-process balance = $50,000 in Molding and $60,000 in Assembly). Altogether, Bishop purchased $500,000 in materials on account last period. Bishop also spent $125,000 cash on manufacturing overhead and recognized $20,000 in factory equipment depreciation. Bishop accrued $200,000 in direct labor costs in Molding and $150,000 in direct labor costs in Assembly. Bishop used $250,000 worth of direct materials in Molding, $200,000 worth of direct materials in Assembly, and $80,000 in indirect materials. The process costing report at the end of the period was as follows: MOLDING ASSEMBLY Cost of goods completed and transferred out $540,000 $807,244 Cost of ending work-in-process 88,000 233,469 Cost of abnormal spollage 12,000 14,287 The beginning balance in raw materials inventory was $75,000, the beginning balance in finished goods inventory was $150,000, and the beginning cash balance was $500,000. Bishop sold goods costing $800,000 and spent $210,000 cash on period expenses. Make all journal entries for the period and post them to t-accounts. 119
25. Bishop Corporation uses normal process costing (weighted average method) and applies manufacturing overhead at a rate of 70% of direct labor costs. Bishop has two departments: Molding and Assembly (beginning work-in-process balance = $50,000 in Molding and $60,000 in Assembly). Altogether, Bishop purchased $500,000 in materials on account last period. Bishop also spent $125,000 cash on manufacturing overhead and recognized $20,000 in factory equipment depreciation. Bishop accrued $200,000 in direct labor costs in Molding and $150,000 in direct labor costs in Assembly. Bishop used $250,000 worth of direct materials in Molding, $200,000 worth of direct materials in Assembly, and $80,000 in indirect materials. The process costing report at the end of the period was as follows: MOLDING ASSEMBLY Cost of goods completed and transferred out $540,000 $807,244 Cost of ending work-in-process 88,000 233,469 Cost of abnormal spollage 12,000 14,287 The beginning balance in raw materials inventory was $75,000, the beginning balance in finished goods inventory was $150,000, and the beginning cash balance was $500,000. Bishop sold goods costing $800,000 and spent $210,000 cash on period expenses. Make all journal entries for the period and post them to t-accounts. 119
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...
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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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Transcribed Image Text:25. Bishop Corporation uses normal process costing (weighted average method) and applies
manufacturing overhead at a rate of 70% of direct labor costs. Bishop has two departments:
Molding and Assembly (beginning work-in-process balance = $50,000 in Molding and
$60,000 in Assembly). Altogether, Bishop purchased $500,000 in materials on account
last period. Bishop also spent $125,000 cash on manufacturing overhead and recognized
$20,000 in factory equipment depreciation. Bishop accrued $200,000 in direct labor costs
in Molding and $150,000 in direct labor costs in Assembly. Bishop used $250,000 worth of
direct materials in Molding, $200,000 worth of direct materials in Assembly, and $80,000
in indirect materials. The process costing report at the end of the period was as follows:
MOLDING
ASSEMBLY
Cost of goods completed and
transferred out
$540,000
$807,244
Cost of ending work-in-process
0170088,000
233,469
Cost of abnormal spollage
14,287 og vid
12,000
las no bier
liss Gau 000,02€
The beginning balance in raw materials inventory was $75,000, the beginning balance in
finished goods inventory was $150,000, and the beginning cash balance was $500,000.
Bishop sold goods costing $800,000 and spent $210,000 cash on period expenses.
Make all journal entries for the period and post them to t-accounts.
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