d the Direct labor paid and assigned to Work in Process Inventory. Record the indirect labor paid and assigned to Factory Overhead. Record the entry for Overhead costs applied to Work in Process Inventory. Record the cost of indirect materials used. Record the cost of factory utilities, paid in cash. Record depreciation on factory equipment. Record the cost of factory rent,
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.
Record the entry for Materials purchases (on credit).
Record the direct materials used in production.
Record the Direct labor paid and assigned to Work in Process Inventory.
Record the indirect labor paid and assigned to Factory Overhead.
Record the entry for Overhead costs applied to Work in Process Inventory.
Record the cost of indirect materials used.
Record the cost of factory utilities, paid in cash.
Record
Record the cost of factory rent, paid in cash.
Record the entry for transfer of Jobs 306 and 307 to Finished Goods Inventory.
Record the Cost of goods sold for Job 306.
Record the revenue from the sale of Job 306.
Record the entry for assignment of any underapplied or overapplied overhead to the Cost of Goods Sold.
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[The following information applies to the questions displayed below.]
Marcelino Co.'s March 31 inventory of raw materials is $81,000. Raw materials purchases in April are $560,000, and factory
payroll cost in April is $381,000. Overhead costs incurred in April are: indirect materials, $55,000; indirect labor, $25,000;
factory rent, $38,000; factory utilities, $21,000; and factory equipment depreciation, $53,000. The predetermined
overhead rate is 50% of direct labor cost. Job 306 is sold for $680,000 cash in April. Costs of the three jobs worked on in
April follow.
Job 306
Job 307
Job 308
Balances on March 31
$ 26,000
21,000
10,500
$ 39,000
13,000
6,500
Direct materials
Direct labor
Applied overhead
Costs during April
220,000
153,000
$115,000
100,000
Direct materials
136,000
103,000
Direct labor
Applied overhead
?
Finished
Finished
In
Status on April 30
(sold)
(unsold)
process
Required:
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost
assigned to each job (including the balances from March 31).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a02b260-ff6c-4d5e-84bc-57397ca3f648%2F2a06c22b-85ee-40f8-a7b7-a99d50fb8e81%2Fnuqyjuo_processed.png&w=3840&q=75)
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