Entries for Factory Costs and Jobs Completed Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,000 of indirect materials and $12,400 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $10,000 Direct materials $20,000 Direct labor 8,000 Direct labor 17,000 Factory overhead 6,000 Factory overhead 12,750 Total $24,000 Total $49,750 Job 303 Job 304 Direct materials $24,000 Direct materials $14,000 Direct labor 18,000 Direct labor 12,000 Factory overhead — Factory overhead — Journalize the summary entry to record each of the following operations for January (one entry for each operation): a. Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank. Work in Process fill in the blank e99482f90fe0fc2_2 fill in the blank e99482f90fe0fc2_3 Factory Overhead fill in the blank e99482f90fe0fc2_5 fill in the blank e99482f90fe0fc2_6 Materials fill in the blank e99482f90fe0fc2_8 fill in the blank e99482f90fe0fc2_9 Feedback a. Record direct materials costs in the work in process account, and indirect materials costs in the factory overhead account. b. Direct and indirect labor used. For a compound transaction, if an amount box does not require an entry, leave it blank. Work in Process fill in the blank 746e5a097f92ffd_2 fill in the blank 746e5a097f92ffd_3 Factory Overhead fill in the blank 746e5a097f92ffd_5 fill in the blank 746e5a097f92ffd_6 Wages Payable fill in the blank 746e5a097f92ffd_8 fill in the blank 746e5a097f92ffd_9 Feedback b. Record direct labor costs in the work in process account, and indirect labor costs in the factory overhead account. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). Work in Process fill in the blank b89c870ca05afc1_2 Factory Overhead fill in the blank b89c870ca05afc1_4 Feedback c. Apply factory overhead based on direct labor costs. d. Completion of Jobs 301 and 302. Finished Goods fill in the blank 8d10aa05a056fc3_2 Work in Process fill in the blank 8d10aa05a056fc3_4 Feedback
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 for
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $8,000 of indirect materials and $12,400 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
| Job 301 | Job 302 | ||||
| Direct materials | $10,000 | Direct materials | $20,000 | ||
| Direct labor | 8,000 | Direct labor | 17,000 | ||
| Factory overhead | 6,000 | Factory overhead | 12,750 | ||
| Total | $24,000 | Total | $49,750 | ||
| Job 303 | Job 304 | ||||
| Direct materials | $24,000 | Direct materials | $14,000 | ||
| Direct labor | 18,000 | Direct labor | 12,000 | ||
| Factory overhead | — | Factory overhead | — |
Journalize the summary entry to record each of the following operations for January (one entry for each operation):
a. Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank.
| Work in Process | fill in the blank e99482f90fe0fc2_2 | fill in the blank e99482f90fe0fc2_3 | |
| Factory Overhead | fill in the blank e99482f90fe0fc2_5 | fill in the blank e99482f90fe0fc2_6 | |
| Materials | fill in the blank e99482f90fe0fc2_8 | fill in the blank e99482f90fe0fc2_9 |
a. Record direct materials costs in the work in process account, and indirect materials costs in the factory overhead account.
b. Direct and indirect labor used. For a compound transaction, if an amount box does not require an entry, leave it blank.
| Work in Process | fill in the blank 746e5a097f92ffd_2 | fill in the blank 746e5a097f92ffd_3 | |
| Factory Overhead | fill in the blank 746e5a097f92ffd_5 | fill in the blank 746e5a097f92ffd_6 | |
| Wages Payable | fill in the blank 746e5a097f92ffd_8 | fill in the blank 746e5a097f92ffd_9 |
b. Record direct labor costs in the work in process account, and indirect labor costs in the factory overhead account.
c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
| Work in Process | fill in the blank b89c870ca05afc1_2 | ||
| Factory Overhead | fill in the blank b89c870ca05afc1_4 |
c. Apply factory overhead based on direct labor costs.
d. Completion of Jobs 301 and 302.
| Finished Goods | fill in the blank 8d10aa05a056fc3_2 | ||
| Work in Process | fill in the blank 8d10aa05a056fc3_4 |
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