Ivanhoe Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending on customer preference. On June 1, 2022, the general ledger for Ivanhoe Inc. contains the following data. Raw Materials Inventory $4,600 Work in Process Inventory $5,425 Subsidiary data for Work in Process Inventory on June 1 are as follows. Cost Element Direct materials Direct labor Manufacturing overhead Rodgers Koss Stevens Linton Job Cost Sheets Rodgers General use Rodgers $700 300 (a) 375 Manufacturing Overhead Applied Manufacturing Overhead Incurred $1,375 Customer Job Materials Requisition Slips Customer Job Stevens $900 During June, raw materials purchased on account were $5,000, and $5,100 of factory wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $500 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. $700 1,900 600 $2,025 $2,025 1,400 400 5,000 500 1,500 625 $6,500 Linton $900 500 $25 Time Tickets $800 900 400 1,400 500 4,000 1,100 $35,000 $29,800 $5,100 Overhead was assigned to jobs at the same rate of $1.25 per dollar of direct labor cost throughout the year. The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $20,200. Each customer paid in full at the time of sale. Journalize the June transactions: (1) purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually)
Ivanhoe Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending on customer preference. On June 1, 2022, the general ledger for Ivanhoe Inc. contains the following data. Raw Materials Inventory $4,600 Work in Process Inventory $5,425 Subsidiary data for Work in Process Inventory on June 1 are as follows. Cost Element Direct materials Direct labor Manufacturing overhead Rodgers Koss Stevens Linton Job Cost Sheets Rodgers General use Rodgers $700 300 (a) 375 Manufacturing Overhead Applied Manufacturing Overhead Incurred $1,375 Customer Job Materials Requisition Slips Customer Job Stevens $900 During June, raw materials purchased on account were $5,000, and $5,100 of factory wages were paid. Additional overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $500 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. $700 1,900 600 $2,025 $2,025 1,400 400 5,000 500 1,500 625 $6,500 Linton $900 500 $25 Time Tickets $800 900 400 1,400 500 4,000 1,100 $35,000 $29,800 $5,100 Overhead was assigned to jobs at the same rate of $1.25 per dollar of direct labor cost throughout the year. The patios for customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $20,200. Each customer paid in full at the time of sale. Journalize the June transactions: (1) purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Transcribed Image Text:Ivanhoe Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and
lumber, depending on customer preference. On June 1, 2022, the general ledger for Ivanhoe Inc. contains the following data.
Raw Materials Inventory
Work in Process Inventory $5,425
Subsidiary data for Work in Process Inventory on June 1 are as follows.
Cost Element
Direct materials
Direct labor
Manufacturing overhead
Rodgers
Koss
Stevens
Linton
Job Cost Sheets
Rodgers
General use
Manufacturing Overhead Applied
Manufacturing Overhead Incurred
$700
(a)
Rodgers Stevens
$1,375
Customer Job
$900
During June, raw materials purchased on account were $5,000, and $5,100 of factory wages were paid. Additional overhead costs
consisted of depreciation on equipment $900 and miscellaneous costs of $500 incurred on account.
A summary of materials requisition slips and time tickets for June shows the following.
Customer Job Materials Requisition Slips Time Tickets
$700
605
400
Linton
5,000
1,500
$900
500
$2.025
400
1,400
4,000
$35.000
529.800
$5.100
Overhead was assigned to jobs at the same rate of $1.25 per dollar of direct labor cost throughout the year. The patios for customers
Rodgers, Stevens, and Linton were completed during June and sold for a total of $20,200. Each customer paid in full at the time of
Journalize the June transactions: (1) purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs
incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. (List
all debit entries before credit entries, Credit account titles one automatically indented when amount is entered. Do not indent manually.)
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