Before the completed production for June is recorded, the work in process inventory account for James Company appears as follows: Work in Process Inventory Balance June 1 $72,000 Direct material 202,500 Direct labor 144,000 Manufacturing overhead applied 153,000 Assume that completed production for June includes Jobs 107, 108, and 109 with total costs of $126,000, $265,500, and $112,500, respectively. a. Determine the cost of unfinished jobs at June 30 and prepare a journal entry to record completed production. Work in process balance as of June 30 $Answer General Journal Description Debit Credit Answer Answer Answer Answer Answer Answer b. Using general journal entries, record the sale of Job 107 for $180,000 on account. General Journal Description Debit Credit Answer Answer Answer Answer Answer Answer To transfer cost to expense. Answer Answer Answer Answer Answer Answer To record sale of job 107.
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.
Before the completed production for June is recorded, the work in process inventory account for James Company appears as follows:
| Work in Process Inventory | |
|---|---|
| Balance June 1 | $72,000 |
| Direct material | 202,500 |
| Direct labor | 144,000 |
| Manufacturing |
153,000 |
Assume that completed production for June includes Jobs 107, 108, and 109 with total costs of $126,000, $265,500, and $112,500, respectively.
a. Determine the cost of unfinished jobs at June 30 and prepare a
Work in process balance as of June 30 $Answer
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| Answer | Answer
|
Answer
|
| Answer | Answer
|
Answer
|
b. Using general journal entries, record the sale of Job 107 for $180,000 on account.
| General Journal | ||
|---|---|---|
| Description | Debit | Credit |
| Answer | Answer
|
Answer
|
| Answer | Answer
|
Answer
|
| To transfer cost to expense. | ||
| Answer | Answer
|
Answer
|
| Answer | Answer
|
Answer
|
| To record sale of job 107. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
