Debit to Account: Balance, June 1 $5000 Direct Materials $18000 Direct Labor $12000 Manufacuring overhead (applied to jobs as 125% of direct labor costs) $15000 Total debits to account $50000 Credits to account: Transferred to finished goods inventory acct $44000 Balance June 30 $6000 1. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30 2. Prepare general journal entries to summarize: a. the manufacuring costs (direct materials, direct labor and overhead) charged to production duringJune b. the transfer of production completed duringJune to the FinishedGoods Inventory account c. the cash sale of 80% of the merchandise during June at a total sales price of $50,000. Show th erealted cost of goods sold in in a separate journal entry
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.
Debit to Account:
Balance, June 1 $5000
Direct Materials $18000
Direct Labor $12000
Manufacuring
Total debits to account $50000
Credits to account:
Transferred to finished goods inventory acct $44000
Balance June 30 $6000
1. Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30
2. Prepare general journal entries to summarize:
a. the manufacuring costs (direct materials, direct labor and overhead) charged to production duringJune
b. the transfer of production completed duringJune to the FinishedGoods Inventory account
c. the cash sale of 80% of the merchandise during June at a total sales price of $50,000. Show th erealted cost of goods sold in in a separate
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