Blue Sky Soda estimates total factory overhead costs of $4,200,000 and total direct labor costs of $2,800,000 for its first year of operations. During January, the company used $80,000 of direct labor cost in its Blending department and $60,000 of direct labor cost in its Bottling department. Compute the predetermined overhead rate as a percentage of direct labor cost. Prepare the journal entry to apply factory overhead to the Blending and Bottling departments. Complete this question by entering your answers in the tabs below. Required 2 Prepare the journal entry to apply factory overhead to the Blending and Bottling departments. Journal entry worksheet 1 Record the entry to apply overhead to production Note: Enter debits before credits. Prev. 5 of 5 Next Type here to search
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.
Blue Sky Soda estimates total
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