Concept Introduction:
Cost Records: Cost records are the data showing the amount incurred for manufacturing the product or providing the services. The company usually maintain their cost records as integrated system of accounting. In integrated system the cost and financial information are maintained in same set of data.
The Following
Particulars | Amount (In $) Debit | Amount(In $) Credit |
-For Purchase of Material | xxxxx | |
Material Control A/c………………..Dr. | xxxxx | |
To Cash/Accounts Payable A/c | ||
-For Issue of Material for Production | xxxxx | |
Work in Process Inventory A/c………..Dr. | Xxxx | |
To Material Control A/c | ||
-For issue of Material for indirect use | Xxxxx | |
Manufacturing Overhaed A/c………….Dr. | xxxx | |
To Material Control A/c | ||
-For Amount paid towards Wages | xxxx | |
Wages Control A/c……………Dr. | xxxx | |
To Cash A/c/Wages Payable A/c | ||
-For utilisation of Labor towards production | Xxxxx | |
Work in Process Inventory A/c………..Dr. | Xxxx | |
To Wages Control A/c | ||
-For utilisation of labor for indirect use | Xxxxx | |
Manufacturing Overhead A/c……………Dr. | Xxxxx | |
To Wages Control A/c | ||
-For Charging Actual Overhead Cost | Xxxxx | |
Manufacturing Overhead A/c………Dr. | Xxxxx | |
To Deprecaition A/c To Overhead Expense A/c |
||
-For Allocating Overhead for production | Xxxx | |
Work in Process Inventory A/c………….Dr. | Xxxxx | |
To Manufacturing Overhead A/c | ||
-For Adjsuting Over Allocation of Overhead | Xxxx | |
Manufacturing Overhead A/c…………Dr. | xxxxx | |
To Cost of Goods Sold A/c | ||
-For Adjusting Under Allocation of Overhead | xxxx | |
Cost of Goods Sold A/c………………Dr. | xxxx | |
To Manufacturing Overhead A/c |
Requirement 1
To Determine
1. The amount missing in the Cost Records of Company.
a. Amount in credit side of Raw Material Inventory Account
b. Amount in Debit Side of Work in Process Inventory Account
c. Amount in Debit side of Finished Goods Inventory Account
d. Amount in credit side of finished goods inventory account
e. Amount in credit side of wages payable account
f. Amount in credit side of Manufacturing Overhead Account
g. Amount in Debit side of Cost of Goods Sold Account
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Horngren's Accounting (11th Edition)
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