APPLY THE CONCEPTS: Determine the costs for Work in Process and Finished GoodsJob 1Job 2Job 3Job 4Materials$550$400$315$411Labor818525475623Overhead325258126164$$TotalComplete the table and determine the following accountWork in Process $Finished Goods $ Mastery Problem: Job Order Costing (Advanced)Cost flowsThe price quoted to the customer is closely tied to the estimated cost in environments in which products are made according to the customer's specifications. Therefore, a company must be able to determine the unit cost of its products for pricingas well as for financial reporting purposes. To track costs in these environments, a Job order costing system is generally used. A job order costing system must be able to identify each individual job and accumulate its costs separately from thecosts of other jobs. Recall the flow of costs used to determine cost of goods manufactured and cost of goods sold. The following flowchart illustrates the flow of costs into Work in Process and Finished Goods.MaterialsLaborOverheadJob 3Materials, Labor,OHWork inJob 4Process:Materials, Labor,OHIn job order costing, the costsin Work in Process andFinished Goods can be relatedto specific jobs.Job 1Materials, Labor,OHFinishedJob 2Goods:Materials, Labor,он

Overhead costs are - Indirect cost It includes: Rent. Accounting fees Advertising expenses…

APPLY THE CONCEPTS: Determine the costs for Work in Process and Finished Goods Job 1 Job 2 Job 3 Job 4 Materials $550 $400 $315 $411 Labor 818 525 475 623 Overhead 325 258 126 164 Total Complete the table and determine the following account Work in Process Finished Goods s

APPLY THE CONCEPTS: Determine the costs for Work in Process and Finished Goods Job 1 Job 2 Job 3 Job 4 Materials $550 $400 $315 $411 Labor 818 525 475 623 Overhead 325 258 126 164 Total Complete the table and determine the following account Work in Process Finished Goods s

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

APPLY THE CONCEPTS: Determine the costs for Work in Process and Finished Goods
Job 1
Job 2
Job 3
Job 4
Materials
$550
$400
$315
$411
Labor
818
525
475
623
Overhead
325
258
126
164
$
$
Total
Complete the table and determine the following account
Work in Process $
Finished Goods $

Mastery Problem: Job Order Costing (Advanced)
Cost flows
The price quoted to the customer is closely tied to the estimated cost in environments in which products are made according to the customer's specifications. Therefore, a company must be able to determine the unit cost of its products for pricing
as well as for financial reporting purposes. To track costs in these environments, a Job order costing system is generally used. A job order costing system must be able to identify each individual job and accumulate its costs separately from the
costs of other jobs. Recall the flow of costs used to determine cost of goods manufactured and cost of goods sold. The following flowchart illustrates the flow of costs into Work in Process and Finished Goods.
Materials
Labor
Overhead
Job 3
Materials, Labor,
OH
Work in
Job 4
Process:
Materials, Labor,
OH
In job order costing, the costs
in Work in Process and
Finished Goods can be related
to specific jobs.
Job 1
Materials, Labor,
OH
Finished
Job 2
Goods:
Materials, Labor,
он

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