1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank. 2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
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.
Entries and Schedules for Unfinished Jobs and Completed Jobs
Hildreth Company uses a
- Materials purchased on account, $2,130.
- Materials requisitioned and factory labor used:
Job No. Materials Factory Labor 101 $2,710 $2,080 102 3,310 2,810 103 2,200 1,370 104 7,430 5,160 105 4,720 3,930 106 3,440 2,500 For general factory use 920 3,080 Factory overhead costs incurred on account, $5,180.Depreciation of machinery and equipment, $1,480.- The factory overhead rate is $35 per machine hour. Machine hours used:
Job No. Machine Hours 101 35 102 22 103 18 104 67 105 26 106 16 Total 184 - Jobs completed: 101, 102, 103, and 105.
- Jobs were shipped and customers were billed as follows: Job 101, $7,220; Job 102, $8,270; Job 105, $12,180.
Required:
1.
2.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
