Ivanhoe Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,780 and two jobs in process: Job No. 429 $2,160, and Job No. 430 $1,620. During May, a summary of source documents reveals the following. Job Number Materials Requisition Slips Labor Time Tickets 429 $2,700 $2,080 430 3,780 3,240 431 4,780 $11,260 8,200 $13,520 General use 920 1,240 $12,180 $14,760 Ivanhoe Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month. Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets. (Post entries in the order of journal entries presented in the previous part.) Work in Process Inventory enter a debit amount enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose the end date of the accounting period enter a debit balance choose the end date of the accounting period enter a credit balance Job Cost Sheets Job No. Beginning Work in Process Direct Material Direct Labor Manufacturing Overhead Total 430 $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount 431 enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount enter a dollar amount $enter a total amount $enter a total amount $enter a total amount $enter a total amount $enter a total amount
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.
Ivanhoe Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,780 and two jobs in process: Job No. 429 $2,160, and Job No. 430 $1,620. During May, a summary of source documents reveals the following.
|
Job Number
|
Materials
Requisition Slips |
Labor Time
Tickets |
||||||
|---|---|---|---|---|---|---|---|---|
|
429
|
$2,700 | $2,080 | ||||||
|
430
|
3,780 | 3,240 | ||||||
|
431
|
4,780 | $11,260 | 8,200 | $13,520 | ||||
|
General use
|
920 | 1,240 | ||||||
| $12,180 | $14,760 |
Ivanhoe Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.
Post the entries to Work in Process Inventory, and prove the agreement of the control account with the
|
Work in Process Inventory
|
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|---|---|---|---|
|
enter a debit amount
|
enter a debit amount |
choose a transaction date
|
enter a credit amount |
|
choose a transaction date
|
enter a debit amount |
choose a transaction date
|
enter a credit amount |
|
choose a transaction date
|
enter a debit amount |
choose a transaction date
|
enter a credit amount |
|
choose a transaction date
|
enter a debit amount |
choose a transaction date
|
enter a credit amount |
|
choose the end date of the accounting period
|
enter a debit balance |
choose the end date of the accounting period
|
enter a credit balance |
|
Job Cost Sheets
|
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Job
No. |
Beginning Work
in Process |
Direct
Material |
Direct
Labor |
Manufacturing
Overhead |
Total |
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|
430
|
$enter a dollar amount
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$enter a dollar amount
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$enter a dollar amount
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$enter a dollar amount
|
$enter a dollar amount
|
|||||
|
431
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
enter a dollar amount
|
|||||
|
$enter a total amount
|
$enter a total amount
|
$enter a total amount
|
$enter a total amount
|
$enter a total amount
|
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