Item Hourly labor wages Factory supervision Production engineer Factory janitorial work Selling, general, and administrative salaries. Total payroll costs Description 810 hours @ $19 per hour 180 hours for Job 101 - 260 hours for Job 102 - 370 hours for Job 103 - $ 3,420 4,940 7,030 Total Cost $ 15,390 3,550 6,700 1,500 9,100 $36,240 Required: 1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing overhead to products at a predetermined rate of $38 per direct labor hour. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
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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