Gabrus Company produces a product in two departments: (1) Cooking and (2) Finishing. The company uses a process cost accounting system. Accounting Transactions No. Transactions (A) Purchased $60,000 of raw materials for half cash and the rest on account. Units costing $66,000 were completed in the Cooking Department and were transferred to the Finishing Department. (B)
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.
![(B) [Select]
[Select]
To record transfer of units to
the Finishing Department
[Select]
[Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f354114-ad39-459b-95b3-9677682fab43%2Ff7b4c10d-da29-4965-894a-d301439067cf%2F3umddf9_processed.jpeg&w=3840&q=75)
![Gabrus Company produces a product in two departments: (1) Cooking and (2)
Finishing. The company uses a process cost accounting system.
Accounting Transactions
No.
Transactions
(A) Purchased $60,000 of raw materials for half cash and the rest on account.
Units costing $66,000 were completed in the Cooking Department and were
transferred to the Finishing Department.
(B)
Prepare the journal entries to record the preceding transactions for BNC Company.
• List debit transactions first and then list credit transactions.
General Journals
Debit ($)
No.
(A)
Account Titles and
Explanation
[Select]
Cash
[Select]
To record purchase of
materials
[Select]
[Select]
[Select]
Credit ($)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f354114-ad39-459b-95b3-9677682fab43%2Ff7b4c10d-da29-4965-894a-d301439067cf%2Fuv5us2i_processed.jpeg&w=3840&q=75)
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