Hamlin Manufacturing co. has the following transactions:1) Raw Material purchased on cash $1450,000.2) Raw material purchased on account $20,000.3) Raw material requisitions & direct labor hours.4) FOH applied $9 per direct labor hour; direct labor cost $6 per direct labor hour.5) Depreciation of office premises $3,000 and for factory machinery$5,000.6) FOH Incurred $900 per job.7) Job# 1A, 2B, &4D were completed.8) Job #2B, 4D were sold on account $ 19, 000 & $25,000 respectively. Required: Prepare Journal Entries and T- Account of Work in Process (WIP) and Factory Overhead (FOH)
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.
Hamlin Manufacturing co. has the following transactions:1) Raw Material purchased on cash $1450,000.2) Raw material purchased on account $20,000.3) Raw material requisitions & direct labor hours.4) FOH applied $9 per direct labor hour; direct labor cost $6 per direct labor hour.5)
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