Apply overhead to each of the jobs. Job Job 131 Job 132 Job 133 Overhead ? ? ? Prepare an entry to record the assignment of direct materials to work in process: DR ? ? CR ? ? Prepare an entry to record the assignment of direct labor to work in process: DR ? ? CR ? ? Prepare an entry to record the assignment of manufacturing overhead to work in process: DR ? ? CR ? ?
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.
5. A company’s individual job sheets show these costs:
Job 131 Job 132
Direct materials $4,585 $8,723
Direct labor 2,385 2,498
Using the following accounts, prepare
| Work in |
Cost of Goods Sold |
Finished Goods Inventory |
|
Manufacturing |
Raw Materials Inventory | Factory Wages Expense |
| Factory Wages Payable |
Direct Materials |
Merchandise Inventory |
PLEASE NOTE: You must enter the account names exactly as written above. All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345).
Overhead is applied at 1.25 times the direct labor cost. Use the data on the cost sheets to perform these tasks:
- Apply overhead to each of the jobs.
-
Job Job 131 Job 132 Job 133 Overhead ? ? ? - Prepare an entry to record the assignment of direct materials to work in process:
-
DR ? ? CR ? ? - Prepare an entry to record the assignment of direct labor to work in process:
-
DR ? ? CR ? ? - Prepare an entry to record the assignment of manufacturing overhead to work in process:
-
DR ? ? CR ? ?
Step by step
Solved in 5 steps
