Entries for Factory Costs and Jobs Completed Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $1,540 of indirect materials and $18,640 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $15,940 Direct materials $7,450 Direct labor 6,100 Direct labor 3,200 Factory overhead 3,355 Factory overhead 1,760 Total $25,395 Total $12,410 Job 303 Job 304 Direct materials $21,480 Direct materials $4,590 Direct labor 6,800 Direct labor 900 Factory overhead Factory overhead Journalize the summary entry to record each of the following operations for January (one entry for each operation): a. Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Direct and indirect labor used. For a compound transaction, if an amount box does not require an entry, leave it blank. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302.
Entries for Factory Costs and Jobs Completed Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $1,540 of indirect materials and $18,640 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $15,940 Direct materials $7,450 Direct labor 6,100 Direct labor 3,200 Factory overhead 3,355 Factory overhead 1,760 Total $25,395 Total $12,410 Job 303 Job 304 Direct materials $21,480 Direct materials $4,590 Direct labor 6,800 Direct labor 900 Factory overhead Factory overhead Journalize the summary entry to record each of the following operations for January (one entry for each operation): a. Direct and indirect materials used. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Direct and indirect labor used. For a compound transaction, if an amount box does not require an entry, leave it blank. c. Factory overhead applied to all four jobs (a single overhead rate is used based on direct labor cost). d. Completion of Jobs 301 and 302.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
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Transcribed Image Text:Entries for Factory Costs and Jobs Completed
Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302
were completed during the month, and all costs applicable to them were recorded on the
related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and
all applicable costs except factory overhead have been recorded on the related cost
sheets. In addition to the materials and labor charged directly to the jobs, $1,540 of
indirect materials and $18,640 of indirect labor were used during the month. The cost
sheets for the four jobs entering production during the month are as follows, in
summary form:
Job 301
Job 302
Direct materials
$15,940
Direct materials
$7,450
Direct labor
6,100
Direct labor
3,200
Factory overhead
3,355
Factory overhead
1,760
Total
$25,395
Total
$12,410
Job 303
Job 304
Direct materials
$21,480
Direct materials
$4,590
Direct labor
6,800
Direct labor
900
Factory overhead
Factory overhead
Journalize the summary entry to record each of the following operations for January (one
entry for each operation):
a. Direct and indirect materials used. For a compound transaction, if an amount box
does not require an entry, leave it blank.
b. Direct and indirect labor used. For a compound transaction, if an amount box does
not require an entry, leave it blank.
c. Factory overhead applied to all four jobs (a single overhead rate is used based on
direct labor cost).
d. Completion of Jobs 301 and 302.
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