6 7 S (a) BL Kingbird Corporation uses standard costs with its job order cost accounting system. In January, an order Job No 123 for 1.000 units of Product was received. The standard cost of one unit of Product B is as follows Direct materials Direct labor 4 Overhead 1 5 Standard cost per unit 6. 1 Normal capacity for the month was 4.050 machine hours. During January the following transactions applicable to Job No. 12 occurred 3 No. Account Titles and Explanation 2 7. S B Journalize the transactions. (Credit account titles are automatically indented when amount is entered. De not indent manually) Purchased 2.400 pounds of raw materials on account at $1.34 per pound Requisitioned 3.400 pounds of raw materials for Job No. 12 Incurred 1.170 hours of direct labor at a rate of $8.90 per hour. Worked 1,170 hours of direct ubioren Job No. 12. incurred manufacturing overhead on account $15.620 Applied overhead to Job No 12 on basis of standard machine hours allowed Completed Job No 12 Billed customer for Job No. 12 at a selling price of $75.000 Raw Materiah Inventory Material Price Variance Accounts Payable Work in Process Inventory Material Quantity Varian Raw Materials Inventory Factory Labor 3 pounds at $1.30 per pound 1.10 hour at $9.00 per hour 2 hours variable $4.30 per machine hour; fed $2.90 per machine hout Labor Price Variance Factory Wags Parable Work in Process Inventory Labor Quay Variance Factory Labor Manufacturing Overhead Accounts Paddle Work in Prices vertory Manufacturing Overhea Fished Goods inventory work Accutable Mandfacturing Overheal Finished Good day Sa Revenue (To record sales) Cost of Goods Sold Feed Good investory $3.90 9.90 Debit 14.00 $27,80 Credit
6 7 S (a) BL Kingbird Corporation uses standard costs with its job order cost accounting system. In January, an order Job No 123 for 1.000 units of Product was received. The standard cost of one unit of Product B is as follows Direct materials Direct labor 4 Overhead 1 5 Standard cost per unit 6. 1 Normal capacity for the month was 4.050 machine hours. During January the following transactions applicable to Job No. 12 occurred 3 No. Account Titles and Explanation 2 7. S B Journalize the transactions. (Credit account titles are automatically indented when amount is entered. De not indent manually) Purchased 2.400 pounds of raw materials on account at $1.34 per pound Requisitioned 3.400 pounds of raw materials for Job No. 12 Incurred 1.170 hours of direct labor at a rate of $8.90 per hour. Worked 1,170 hours of direct ubioren Job No. 12. incurred manufacturing overhead on account $15.620 Applied overhead to Job No 12 on basis of standard machine hours allowed Completed Job No 12 Billed customer for Job No. 12 at a selling price of $75.000 Raw Materiah Inventory Material Price Variance Accounts Payable Work in Process Inventory Material Quantity Varian Raw Materials Inventory Factory Labor 3 pounds at $1.30 per pound 1.10 hour at $9.00 per hour 2 hours variable $4.30 per machine hour; fed $2.90 per machine hout Labor Price Variance Factory Wags Parable Work in Process Inventory Labor Quay Variance Factory Labor Manufacturing Overhead Accounts Paddle Work in Prices vertory Manufacturing Overhea Fished Goods inventory work Accutable Mandfacturing Overheal Finished Good day Sa Revenue (To record sales) Cost of Goods Sold Feed Good investory $3.90 9.90 Debit 14.00 $27,80 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Topic Video
Question
Transcribed Image Text:7
B
8
(a)
Kingbird Corporation uses standard costs with its job order cost accounting system. In January, an onder (Job No. 123 for 1.000 unit
of Product B was received. The standard cost of one unit of Product D is as follows
Direct materials
Direct labor
Overhead
Standard cost per unit
4
1
3
Normal capacity for the month was 4.050 machine hours. During January, the following transactions applicable to Job No. 12
occurred
6
1 Purchased 3.400 pounds of raw materials on account at $1.34 per pound
Requisitioned 3.400 pounds of raw materials for Job No. 12
Incurred 1.170 hours of direct labor at a rate of $8.90 per hour
Worked 1,170 hours of direct utior en Job No. 12.
2
3
2
7.
B
4
No. Account Titles and Explanation
S
S
Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually)
Billed customer for Job No. 12 at a selling price of $75,000.
3
incurred manufacturing overhead on account $15.620
Applied overhead to Job No 12 on basis of standard machine hours allowed
Completed Job No 12
Raw Material Inventory
Material Price Variance
Accounts Payable
Work in Process Inventory
Materials Quantity Varianc
3 pounds at $1.30 per pound
1.10 hour at $9.00 per hour
2 hours (variable $4.30 per machine bour; find $2.90 per machine hout
Raw Materials Inventory
Factory Labor
Labor Price Variance
Factory Wages Payable
Work in Process Inventory
Labor Quality Variance
Factory Labor
Accounts Palle
Work in Process overtory
Manufacturing Overhead
Fevshed Goods Inventory
work
Accounts Receivable
Work in Proces ventory
Manfacturing Overheal
Fished Goods wentary
Anti Receable
Sales Revenue
(To record sales)
Cost of Goods Sold
$3.90
Fished Goods Inventory
record cost of goods sold)
9.90
Debit
14.00
$27,80
Credit
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