Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
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.
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Required information
Use the following information to answer questions. (Algo)
[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security products and uses a
job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
Beginning
of period
$ 45,000
9,600
68,000
End of
Period
Inventories
Raw materials
Work in process
Finished goods
$ 45,000
19,000
33,500
Cost incurred for the period
Raw materials purchases
Factory payroll
Factory overhead (actual)
Indirect materials used
Indirect labor used
Other overhead costs
$ 178,000
250,000
9,000
57,500
115,500
Exercise 15-13 (Algo) Recording materials; direct and indirect LO P1, P3
1. Raw materials purchases for cash.
2. Direct materials used.
3. Indirect materials used.
Prepare journal entries for the above transactions for the period.
X Answer is not complete.
No
Transaction
General Journal
Debit
Credit
A
1
Work in process inventory
192,500
Factory wages payable
192,500
В
2
Factory overhead
X,
57,500 X
Factory wages payable
57,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5dc9d2dd-35ab-4c84-a611-40f810db3ab6%2Fe5099ca1-19fd-40d2-8107-7f4449b2d204%2F0r793ll_processed.png&w=3840&q=75)
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