Job 301 Job 302 $12,500 31,000 Direct materials Direct materials $18,750 Direct labor Direct labor 42,200 Factory overhead 7,750 $51,250 Factory overhead 10,550 $71,500 Total Total Job 303 Job 304 Direct materials $ 9,940 Direct materials $14,310 Direct labor 16,500 Direct labor 17,100 Factory overhead Factory overhead
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.
Collegiate Publishing Inc. began printing operations on March 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, $4,500 of indirect materials and $8,200 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:
Journalize the summary entry to record each of the following operations for March (one entry
for each operation):
a. Direct and indirect materials used.
b. Direct and indirect labor used.
c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost).
d. Completion of Jobs 301 and 302.
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