**Instructions:**1. **Journalize the entries** to record the transactions identified below.2. **Determine the account balances** for Work in Process and Finished Goods.3. **Prepare a schedule** of unfinished jobs to support the balance in the Work in Process account.4. **Prepare a schedule** of completed jobs on hand to support the balance in the Finished Goods account.**Transactions:**a. **Materials purchased on account:** 60,000b. **Materials and Labor Costs:** - **Job #100** - Materials: 5000 - Factory Labor: 2500 - Factory Overhead: - **Job #101** - Materials: 4000 - Factory Labor: 2000 - Factory Overhead: - **Job #102** - Materials: 3500 - Factory Labor: 1750 - Factory Overhead: - **Job #103** - Materials: 2500 - Factory Labor: 1250 - Factory Overhead: - **Job #104** - Materials: 1000 - Factory Labor: 500 - Factory Overhead: - **Job #105** - Materials: 1500 - Factory Labor: 750 - Factory Overhead: - **For general factory use:** - Materials: 1800 - Factory Labor: - Factory Overhead: c. **Factory overhead costs incurred:** 10,000d. **Depreciation of machinery:** 8000 - Factory overhead applied as a percent of direct labor cost: 50%e. **Jobs completed:** 100, 101, 102, and 104f. **Jobs 100, 101, 102 were shipped** to customers. - Customers were billed: - Job #100: 12000 - Job #101: 13000 - Job #102: 14000This document provides a structured approach for accounting entries related to manufacturing processes, focusing on materials, labor, overhead, and job completion status for effective financial management. ### True or False Statements on Cost Accounting Systems1. **Cost accounting systems measure, record, and report product costs.** - T F2. **A job order cost system tracks costs from materials inventory to work in process inventory to finished goods inventory to cost of goods sold.** - T F3. **A job order cost system provides product costs for each manufacturing department or process.** - T F4. **A receiving report indicates the quantity of materials received and the condition of the materials received.** - T F5. **The predetermined factory overhead rate equals estimated total factory overhead costs divided by the minimum activity base.** - T F6. **Over-applied factory overhead occurs when less than the total factory overhead is applied.** - T F7. **Work in Process includes direct materials cost, direct labor cost, and applied factory overhead costs.** - T F8. **Period costs are added to the finished goods account.** - T F9. **A job order cost system can be used by managers for cost evaluation and control.** - T F10. **A materials ledger is a separate ledger for each type of work in process.** - T F### ExplanationThis set of true or false statements is designed to test your understanding of cost accounting systems, particularly job order costing. The key focus is on cost tracking and management in manufacturing, with emphasis on overhead rates, cost processes, and reporting tools used by managers. Each statement requires careful consideration to determine its truthfulness based on accounting principles and practices.

Job Costing: Job costing is a method which records costs of manufacturing costs rather than…

Instructions 1. Journalize the entries to record the transactions indentified below. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balance in the Work in Process account.

Instructions 1. Journalize the entries to record the transactions indentified below. 2. Determine the account balances for Work in Process and Finished Goods. 3. Prepare a schedule of unfinished jobs to support the balance in the Work in Process account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

**Instructions:**

1. **Journalize the entries** to record the transactions identified below.
2. **Determine the account balances** for Work in Process and Finished Goods.
3. **Prepare a schedule** of unfinished jobs to support the balance in the Work in Process account.
4. **Prepare a schedule** of completed jobs on hand to support the balance in the Finished Goods account.

**Transactions:**

a. **Materials purchased on account:** 60,000

b. **Materials and Labor Costs:**
- **Job #100**
- Materials: 5000
- Factory Labor: 2500
- Factory Overhead:
- **Job #101**
- Materials: 4000
- Factory Labor: 2000
- Factory Overhead:
- **Job #102**
- Materials: 3500
- Factory Labor: 1750
- Factory Overhead:
- **Job #103**
- Materials: 2500
- Factory Labor: 1250
- Factory Overhead:
- **Job #104**
- Materials: 1000
- Factory Labor: 500
- Factory Overhead:
- **Job #105**
- Materials: 1500
- Factory Labor: 750
- Factory Overhead:
- **For general factory use:**
- Materials: 1800
- Factory Labor:
- Factory Overhead:

c. **Factory overhead costs incurred:** 10,000

d. **Depreciation of machinery:** 8000
- Factory overhead applied as a percent of direct labor cost: 50%

e. **Jobs completed:** 100, 101, 102, and 104

f. **Jobs 100, 101, 102 were shipped** to customers.
- Customers were billed:
- Job #100: 12000
- Job #101: 13000
- Job #102: 14000

This document provides a structured approach for accounting entries related to manufacturing processes, focusing on materials, labor, overhead, and job completion status for effective financial management.

### True or False Statements on Cost Accounting Systems

1. **Cost accounting systems measure, record, and report product costs.**
- T F

2. **A job order cost system tracks costs from materials inventory to work in process inventory to finished goods inventory to cost of goods sold.**
- T F

3. **A job order cost system provides product costs for each manufacturing department or process.**
- T F

4. **A receiving report indicates the quantity of materials received and the condition of the materials received.**
- T F

5. **The predetermined factory overhead rate equals estimated total factory overhead costs divided by the minimum activity base.**
- T F

6. **Over-applied factory overhead occurs when less than the total factory overhead is applied.**
- T F

7. **Work in Process includes direct materials cost, direct labor cost, and applied factory overhead costs.**
- T F

8. **Period costs are added to the finished goods account.**
- T F

9. **A job order cost system can be used by managers for cost evaluation and control.**
- T F

10. **A materials ledger is a separate ledger for each type of work in process.**
- T F

### Explanation

This set of true or false statements is designed to test your understanding of cost accounting systems, particularly job order costing. The key focus is on cost tracking and management in manufacturing, with emphasis on overhead rates, cost processes, and reporting tools used by managers. Each statement requires careful consideration to determine its truthfulness based on accounting principles and practices.

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