Preparing journal entries—inputs Oxford Company had the following transactions in October: Purchased raw materials on account, $70,000 Used materials in production: $26,000 in the Mixing Department; $14,000 in the Packaging Department; $1,000 in indirect materials Incurred labor costs: $8,000 in the Mixing Department; $7,200 in the Packaging Department; $2,200 in indirect labor. Incurred manufacturing overhead costs: 153,500 in machinery depreciation; paid $2,300 for rent and $1,590 for utilities Prepare the journal entries for Oxford Company.
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.
Preparing
Oxford Company had the following transactions in October:
- Purchased raw materials on account, $70,000
- Used materials in production: $26,000 in the Mixing Department; $14,000 in the Packaging Department; $1,000 in indirect materials
- Incurred labor costs: $8,000 in the Mixing Department; $7,200 in the Packaging Department; $2,200 in indirect labor.
- Incurred
manufacturing overhead costs: 153,500 in machinerydepreciation ; paid $2,300 for rent and $1,590 for utilities
Prepare the journal entries for Oxford Company.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
