Materials purchased on account, $1,960. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $3,330 $2,800 302 4,060 3,780 303 2,700 1,850 304 9,120 6,940 305 5,790 5,290 306 4,230 3,360 For general factory use 1,130 4,140 Factory overhead costs incurred on account, $6,360.
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
Tybee Industries Inc. uses a
- Materials purchased on account, $1,960.
- Materials requisitioned and factory labor used:
Job Materials Factory Labor 301 $3,330 $2,800 302 4,060 3,780 303 2,700 1,850 304 9,120 6,940 305 5,790 5,290 306 4,230 3,360 For general factory use 1,130 4,140 Factory overhead costs incurred on account, $6,360.Depreciation of machinery and equipment, $1,990.- The factory overhead rate is $75 per machine hour. Machine hours used:
Job Machine Hours 301 25 302 24 303 38 304 68 305 27 306 44 Total 226 - Jobs completed: 301, 302, 303, and 305.
- Jobs were shipped and customers were billed as follows: Job 301, $9,610; Job 302, $11,570; Job 303, $21,460.
Required:
1.
| Entries | Description | Debit | Credit |
|---|---|---|---|
| a. | fill in the blank 2 | ||
| fill in the blank 4 | |||
| b. | fill in the blank 6 | fill in the blank 7 | |
| fill in the blank 9 | fill in the blank 10 | ||
| fill in the blank 12 | fill in the blank 13 | ||
| fill in the blank 15 | fill in the blank 16 | ||
| c. | fill in the blank 18 | ||
| fill in the blank 20 | |||
| d. | fill in the blank 22 | ||
| fill in the blank 24 | |||
| e. | fill in the blank 26 | ||
| fill in the blank 28 | |||
| f. | fill in the blank 30 | ||
| fill in the blank 32 | |||
| g. | fill in the blank 34 | ||
| fill in the blank 36 | |||
| fill in the blank 38 | |||
| fill in the blank 40 |
2.
| Work in Process | |||
|---|---|---|---|
| fill in the blank 42 | fill in the blank 44 | ||
| fill in the blank 46 | |||
| Bal. | fill in the blank 47 |
| Finished Goods | |||
|---|---|---|---|
| fill in the blank 49 | fill in the blank 51 | ||
| Bal. | fill in the blank 52 |
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
| Tybee Industries Inc. Schedule of Unfinished Jobs |
||||||||
|---|---|---|---|---|---|---|---|---|
| Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
| $ | fill in the blank 54 | $ | fill in the blank 55 | $ | fill in the blank 56 | $ | fill in the blank 57 | |
| fill in the blank 59 | fill in the blank 60 | fill in the blank 61 | fill in the blank 62 | |||||
| Balance of Work in Process, January 30 | $ | fill in the blank 63 |
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
| Tybee Industries Inc. Schedule of Completed Jobs |
||||||||
|---|---|---|---|---|---|---|---|---|
| Job | Direct Materials | Direct Labor | Factory Overhead | Total | ||||
| $ | fill in the blank 65 | $ | fill in the blank 66 | $ | fill in the blank 67 | $ | fill in the blank 68 |
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