Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses job order costing. Balances on April 1 from the materials ledger are as follows: Fabric Polyester filling Lumber Glue The materials purchased during April are summarized from the receiving reports as follows: $31,900 9,600 71,500 3,100 Fabric $154,400 Polyester filling 214,600 Lumber 423,100 Glue 14,700 Materials were requisitioned to individual jobs as follows: Job 601 Job 602 Job 603 Fabric $57,100 44,000 40,500 Polyester Filling Lumber Glue $71,900 $192,400 78,200 168,400. 53,100 93,600 Factory overhead-indirect materials Total $141,600 The glue is not a significant cost, so it is treated as indirect materials (factory overhead). $7,400 $203,200 $454,400 $7,400 Total $321,400 290,600 187,200 7,400 $806,600
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.
Please help me fast
Step by step
Solved in 3 steps
