The following account appears in the ledger prior to recognizing the jobs completed in August: Work in Process Balance, August 1 $ 59,050 Direct materials 335,000 Direct labor 494,700 Factory overhead 226,200 Jobs finished during August are summarized as follows: Job 210 $178,300 Job 216 232,250 Job 224 149,500 Job 230 328,250 Required: a. Journalize the entry on Aug. 31 to record the jobs completed. Refer to the Chart of Accounts for exact wording of account titles. b. Determine the cost of the unfinished jobs at August 31.
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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Work in Process
|
| Balance, August 1 | $ 59,050 |
| Direct materials | 335,000 |
| Direct labor | 494,700 |
| Factory overhead | 226,200 |
| Job 210 | $178,300 |
| Job 216 | 232,250 |
| Job 224 | 149,500 |
| Job 230 | 328,250 |
| a. |
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| b. Determine the cost of the unfinished jobs at August 31. |
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