Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process (Job 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follow (ignore any accounts that are not listed). During January, the company had the following transactions:(a) Purchased $61,000 worth of materials on account. (b) Recorded materials issued to production as follows: Job Number Total Cost 201 $ 10,800 202 21,600 Indirect materials 5,200 $ 37,600 (c) Recorded factory payroll costs from direct labor time tickets that revealed the following: Job Number Hours Total Cost 201 100 $ 2,200 202 392 11,000 Factory supervision 5,000 $ 18,200 (d) Applied overhead to production at a rate of $29.00 per direct labor hour for 492 actual direct labor hours.(e) Recorded the following actual manufacturing overhead costs: Item Total Cost Description Factory rent $ 3,700 Paid in cash Depreciation 3,600 Factory equipment Factory utilities 2,600 Incurred but not paid Factory insurance 2,600 Prepaid policy $ 12,500 (f) Completed Job 201 and transferred it to Finished Goods Inventory. (g) Sold Job 200 for $50,700. Job 202 was still in process at the end of January. I need help completing the t accounts for this information above. I do not understand how to complete d-g.
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.
Reyes Manufacturing Company uses a
During January, the company had the following transactions:
(a) Purchased $61,000 worth of materials on account.
(b) Recorded materials issued to production as follows:
| Job Number | Total Cost | |
| 201 | $ | 10,800 |
| 202 | 21,600 | |
| Indirect materials | 5,200 | |
| $ | 37,600 | |
|
|
(c) Recorded
| Job Number | Hours | Total Cost | |
| 201 | 100 | $ | 2,200 |
| 202 | 392 | 11,000 | |
| Factory supervision | 5,000 | ||
| $ | 18,200 | ||
|
|
(d) Applied overhead to production at a rate of $29.00 per direct labor hour for 492 actual direct labor hours.
(e) Recorded the following actual manufacturing overhead costs:
| Item | Total Cost | Description | |
| Factory rent | $ | 3,700 | Paid in cash |
| 3,600 | Factory equipment | ||
| Factory utilities | 2,600 | Incurred but not paid | |
| Factory insurance | 2,600 | Prepaid policy | |
| $ | 12,500 | ||
|
|
(f) Completed Job 201 and transferred it to Finished Goods Inventory.
(g) Sold Job 200 for $50,700.
Job 202 was still in process at the end of January.
I need help completing the t accounts for this information above. I do not understand how to complete d-g.
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