Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Cooking Canning Beginning work in process $0 $4,540 Materials 24,600 9,100 Labor 8,880 7,530 Overhead 33,400 27,100 Costs transferred in 55,000 Journalize the April transactions.
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.
Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits.
|
Cooking
|
Canning
|
|||
|---|---|---|---|---|
| Beginning work in process | $0 | $4,540 | ||
| Materials | 24,600 | 9,100 | ||
| Labor | 8,880 | 7,530 | ||
| 33,400 | 27,100 | |||
| Costs transferred in | 55,000 |
Journalize the April transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|---|---|---|---|
| April 30 |
enter an account title to record materials used
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record materials used
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record materials used
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record materials used)
|
|||
| 30 |
enter an account title to assign factory labor to production
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to assign factory labor to production
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to assign factory labor to production
|
enter a debit amount
|
enter a credit amount
|
|
|
(To assign factory labor to production)
|
|||
| 30 |
enter an account title to assign overhead to production
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to assign overhead to production
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to assign overhead to production
|
enter a debit amount
|
enter a credit amount
|
|
|
(To assign overhead to production)
|
|||
| 30 |
enter an account title to record costs transferred in
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record costs transferred in
|
enter a debit amount
|
enter a credit amount
|
|
|
(To record costs transferred in)
|
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