arnes Company uses a job order cost system. The following data summarize the operations related to production for October: October 1 Materials purchased on account, $609,540. 2
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.
| October | 1 | Materials purchased on account, $609,540. |
| 2 | Materials requisitioned, $658,830, of which $77,290 was for general factory use. | |
| 31 | Factory labor used, $657,000, of which $87,070 was indirect. | |
| 31 | Other costs incurred on account for factory |
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| 31 | Prepaid expenses expired for factory overhead were $29,400; for selling expenses, $26,310; and for administrative expenses, $18,410. | |
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| 31 | Jobs completed, $1,045,220. | |
| 31 | Cost of goods sold, $890,070. |
| Required: | |
| Journalize the entries to record the summarized operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between |
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