Easy Carry, Inc. manufactures backpacks. Its plant records include the following information: Description Amount Raw Materials Inventory, beginning balance 30,300 Purchases of canvas, on account 64,030 Purchases of sewing machine lubricating oil, on account 910 Subcategory,Materials requisitions: Canvas 63,250 Sewing machine lubricating oil 370 Subcategory,Labor costs incurred: Sewing machine operators 47,290 Plant janitors wages 1,780 Supervisors salary 2,230 Journalize the entries to record the transactions for the month ending July 31, post to the Raw Materials Inventory account, and determine the ending balance in Raw Materials Inventory. Assume that the labor has been incurred, but not yet paid. Journal Date Description Debit Credit July 31 July 31 July 31 July 31 July 31 July 31 July 31 July 31 Raw Materials Inventory Debit Credit Double line Double line
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.
| Description | Amount |
|---|---|
| Raw Materials Inventory, beginning balance | 30,300 |
| Purchases of canvas, on account | 64,030 |
| Purchases of sewing machine lubricating oil, on account | 910 |
| Subcategory,Materials requisitions: | |
| Canvas | 63,250 |
| Sewing machine lubricating oil | 370 |
| Subcategory,Labor costs incurred: | |
| Sewing machine operators | 47,290 |
| Plant janitors wages | 1,780 |
| Supervisors salary | 2,230 |
Journal
| Date | Description | Debit | Credit |
|---|---|---|---|
| July 31 | |||
| July 31 | |||
| July 31 | |||
| July 31 | |||
| July 31 | |||
| July 31 | |||
| July 31 | |||
| July 31 |
Raw Materials Inventory
| Debit | Credit |
|---|---|
| Double line | Double line |
Step by step
Solved in 3 steps
