Entries for Materials Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric Polyester filling Lumber Glue The materials purchased during June are summarized from the receiving reports as follows: Fabric $139,600 Polyester filling 194,000 Lumber 382,500 Glue 13,300 Materials were requisitioned to individual jobs as follows: $28,200 8,500 63,200 2,700 Job 601 Job 602 Job 603 Factory overhead-indirect materials Total Fabric $50,300 38,700 35,700 $124,700 Polyester Filling $63,400 68,900 46,800 Lumber Glue $169,500 148,400 82,500 $6,500 $179,100 $400,400 $6,500 Total $283,200 256,000 165,000 6,500 $710,700
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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