14. Tybee Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations: a. Materials purchased on account, $28,610. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,810 $2,640 302 3,710 3,920 303 2,340 1,910 304 8,210 7,110 305 5,360 5,270 306 3,780 3,390 For general factory use 1,060 4,040
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.
14. Tybee Industries Inc. uses a
| a. Materials purchased on account, $28,610. | |
| b. Materials requisitioned and factory labor used: |
|
Job
|
Materials
|
Factory Labor
|
| 301 | $2,810 | $2,640 |
| 302 | 3,710 | 3,920 |
| 303 | 2,340 | 1,910 |
| 304 | 8,210 | 7,110 |
| 305 | 5,360 | 5,270 |
| 306 | 3,780 | 3,390 |
| For general factory use | 1,060 | 4,040 |
| c. |
|
| d. |
|
| e. The factory overhead rate is $55 per machine hour. Machine hours used: |
| Job | Machine Hours |
| 301 | 24 |
| 302 | 36 |
| 303 | 29 |
| 304 | 73 |
| 305 | 41 |
| 306 | 24 |
| Total | 227 |
| f. Jobs completed: 301, 302, 303 and 305. | |
| g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650. |
| 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.*
|
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