During February, Alexander Inc. worked on two jobs with the following data: Job 12 Job13 Units in each order: 100 200 Units Sold 100 -- Raw Material requisitioned (Feb 3) $2,480 $1,970 Direct labor hours 820 hrs. 1,166 hrs. Direct labor cost(ending Feb 28) $12,300 $17,490 Overhead is assigned on the basis of direct labor hours at a rate of $12. Both jobs were started on February 4th. On February 28, Job 12 was completed and transferred to finished goods. Job 13 is the only unfished job at the end of the month. 1. Prepare a journal entry for using the requisitioned Raw Materials on February 4th. 2. Prepare the journal entry for all direct labor costs for the month. Assume workers have not yet been paid. 3. Prepare the journal entry to show Job 12 being completed and transferred to finished goods
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.
During February, Alexander Inc. worked on two jobs with the following data:
Job 12 Job13
Units in each order: 100 200
Units Sold 100 --
Raw Material requisitioned (Feb 3) $2,480 $1,970
Direct labor hours 820 hrs. 1,166 hrs.
Direct labor cost(ending Feb 28) $12,300 $17,490
1. Prepare a
2. Prepare the journal entry for all direct labor costs for the month. Assume workers have not yet been paid.
3. Prepare the journal entry to show Job 12 being completed and transferred to finished goods.
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