Barker Products is a job shop.
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.
![Barker Products is a job shop. The following events occurred in September:
1. Purchased $13,400 of materials on account.
2. Issued $14,900 in direct materials to the production department.
3. Purchased $11,400 of materials on account.
4. Issued $920 of supplies from the materials Inventory.
5. Pald for the materials purchased in transaction (1).
6. Pald $19,600 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
7. Incurred direct labor costs of $22,800, which were credited to Wages Payable.
8. Issued $1,320 of supplies from the materials Inventory.
9. Applied overhead on the basis of 85 percent of $22,800 direct labor costs.
10. Recognized depreciation on manufacturing property, plant, and equipment of $12,000.
The following balances appeared in the accounts of Barker Products for September:
Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
Cost of Goods Sold
Beginning
$ 32,900
6,140
33,200
Ending
View transaction list
$ 30,300
54,100
Required:
a. Prepare journal entries to record the transactions.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare journal entries to record the transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa044b0f6-28fd-4da6-8af5-7b387b624f6f%2F0b8d75cc-8667-45f4-b2a6-28ad94020493%2Fmwebl6f_processed.jpeg&w=3840&q=75)
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