EX 3-25 (Algo) Basic Journal Entries in Job-Order Costing (LO 3-5) Remote Education Technology, Incorporated started and finished job number B67 during June. The job required $47,200 of direct material and 400 hours of direct labor at $23 per hour. The predetermined overhead rate is $5 per direct-labor hour. Required: Prepare journal entries to record the incurrence of production costs and the completion of job number B67. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Record transfer of job costs from work in process to finished goods inventory. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal
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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