Entries and schedules for unfinished jobs and completed jobsKurtz Fencing Inc. uses a job order cost system. The following datasummarize the operations related to production for March, the firstmonth of operations: A. Materials purchased on account, $45,000.B. Materials requisitioned and factory labor used: Job Materials Factory labour 301 302 303 304 305 306 For general factory use $1,850 3,150 2,200 1,800 4,230 1,770 1,200 $2.500 7,220 5,350 2,400 6,225 2900 5000 C. Factory overhead costs incurred on account, $1,800.D. Depreciation of machinery and equipment, $2,500. E. The factory overhead rate is $30 per machine hour. Machinehours used: Job Machine Hours 301 302 303 304 305 306 Total 30 60 41 63 70 36 300 F. Jobs completed: 301, 302, 303, and 305.G. Jobs were shipped and customers were billed as follows: Job 301,$8,500; Job 302, $16,150; Job 303, $13,400. Instructions 1. Journalize the entries to record the summarized operations.2. Post the appropriate entries to T accounts for Work in Processand Finished Goods, using the identifying letters as transactioncodes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance inthe work in process account.4. Prepare a schedule of completed jobs on hand to support thebalance in the finished goods account
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.
Entries and schedules for unfinished jobs and completed jobs
Kurtz Fencing Inc. uses a
summarize the operations related to production for March, the first
month of operations:
A. Materials purchased on account, $45,000.
B. Materials requisitioned and factory labor used:
| Job | Materials | Factory labour |
|
301 302 303 304 305 306 For general factory use |
$1,850 3,150 2,200 1,800 4,230 1,770 1,200 |
$2.500 7,220 5,350 2,400 6,225 2900 5000 |
C.
D.
E. The factory overhead rate is $30 per machine hour. Machine
hours used:
| Job | Machine Hours |
|
301 302 303 304 305 306 Total |
30 60 41 63 70 36 300 |
F. Jobs completed: 301, 302, 303, and 305.
G. Jobs were shipped and customers were billed as follows: Job 301,
$8,500; Job 302, $16,150; Job 303, $13,400.
Instructions
1.
2.
and Finished Goods, using the identifying letters as transaction
codes. Insert memo account balances as of the end of the month.
3. Prepare a schedule of unfinished jobs to support the balance in
the work in process account.
4. Prepare a schedule of completed jobs on hand to support the
balance in the finished goods account
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
