Use the following information to answer questions. (Algo) 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 Inventories [The following information applies to the questions displayed below] Raw materials Work in process Finished goods Beginning of period $ 42,000 9,300 57,000 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs End of Period $ 55,000 20,300 33,300 $ 188,000 250,000 9,000 57,500 119,500
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.
![Use the following information to answer questions. (Algo)
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.
Inventories
[The following information applies to the questions displayed below]
Raw materials
Work in process
Finished goods
Beginning of
period
$ 42,000
9,300
57,000
Cost incurred for the period
$
Raw materials purchases
Factory payroll
Factory overhead (actual)
Indirect materials used
Indirect labor used
Other overhead costs
End of Period
$ 55,000
20,300
33,300
188,000
250,000
9,000
57,500
119,500
Exercise 19-12 (Algo) Computing materials, labor, overhead, and cost of goods manufactured LO P1, P2,
P3, P4
1. In the Raw Materials Inventory T-account, insert amounts for beginning and ending balances along with purchases and indirect
materials used. Solve for direct materials used in the period.
2. Compute the cost of direct labor used for the period.
3. In the Work in Process Inventory T-account, insert amounts for beginning and ending balances along with direct materials used
(from part 1), direct labor used (from part 2), and applied overhead Solve for cost of goods manufactured in the period.
4. In the Finished Goods Inventory T-account, insert amounts for beginning and ending balances along with cost of goods
manufactured (from part 3). Solve for cost of goods sold in the period (do not consider any under- or overapplied overhead)
5. In the Factory Overhead T-account, Insert amounts for indirect materials used, indirect labor used, other overhead costs, and
applied overhead. Solve for underapplied or overapplied overhead](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb8daa5ee-74b2-4ae0-958a-39028c37e634%2F0cf42f7b-2b91-4019-9677-6940b39ab404%2Fwavjda8b_processed.jpeg&w=3840&q=75)
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