Job Cost Journal Entries and T Accounts Summarized data for the first month's operations of Dobson Welding Foundry are presented below. A job order costing system is used. pg. 3-33 1. Materials purchased on account, $58,000. 2. Amounts of materials requisitioned and foundry labor used: Job 1 2. 3. 4 5 6 Indirect materials Indirect labor.. a. Materials $ 4,400 7,000 3,200 12,000 4,800 1,400 6,200 b. Foundry Labor 3. Foundry overhead is applied at the rate of 200% of direct labor costs. 4. Miscellaneous foundry overhead incurred: Prepaid foundry insurance written off... Property taxes on foundry building accrued. Foundry utilities payable accrued.. Depreciation on foundry equipment. Other costs incurred on account.. $2,600 5,000 2,400 4,600 2,800 1,200 3,400 5. Ending work-in-process consisted of Jobs 4 and 6. 6. Jobs 1 and 3 and one-half of Job 2 were sold on account for $20,000, $17,400, and $14,400, respectively. $ 1,480 2,360 5,280 7,440 10,320 Required Open general ledger T accounts for Materials Inventory, Wages Payable, Foundry Overhead, Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. Also set up sub- sidiary T accounts as job order cost sheets for each job. Prepare general journal entries to record the summarized transactions for the month, and post ap- propriate entries to any accounts listed in requirement (a). Key each entry parenthetically to the related number in the problem data.
Job Cost Journal Entries and T Accounts Summarized data for the first month's operations of Dobson Welding Foundry are presented below. A job order costing system is used. pg. 3-33 1. Materials purchased on account, $58,000. 2. Amounts of materials requisitioned and foundry labor used: Job 1 2. 3. 4 5 6 Indirect materials Indirect labor.. a. Materials $ 4,400 7,000 3,200 12,000 4,800 1,400 6,200 b. Foundry Labor 3. Foundry overhead is applied at the rate of 200% of direct labor costs. 4. Miscellaneous foundry overhead incurred: Prepaid foundry insurance written off... Property taxes on foundry building accrued. Foundry utilities payable accrued.. Depreciation on foundry equipment. Other costs incurred on account.. $2,600 5,000 2,400 4,600 2,800 1,200 3,400 5. Ending work-in-process consisted of Jobs 4 and 6. 6. Jobs 1 and 3 and one-half of Job 2 were sold on account for $20,000, $17,400, and $14,400, respectively. $ 1,480 2,360 5,280 7,440 10,320 Required Open general ledger T accounts for Materials Inventory, Wages Payable, Foundry Overhead, Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. Also set up sub- sidiary T accounts as job order cost sheets for each job. Prepare general journal entries to record the summarized transactions for the month, and post ap- propriate entries to any accounts listed in requirement (a). Key each entry parenthetically to the related number in the problem data.
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:Job Cost Journal Entries and T Accounts Summarized data for the first month's operations of
Dobson Welding Foundry are presented below. A job order costing system is used.
pg. 3-33
1. Materials purchased on account, $58,000.
2. Amounts of materials requisitioned and foundry labor used:
Job
1
2.
3
4
5
6
a.
Indirect materials
Indirect labor..
b.
Materials
$ 4,400
7,000
3,200
12,000
4,800
1,400
6,200
3. Foundry overhead is applied at the rate of 200% of direct labor costs.
4. Miscellaneous foundry overhead incurred:
C.
Foundry Labor
$2,600
5,000
2,400
4,600
2,800
1,200
Prepaid foundry insurance written off...
Property taxes on foundry building accrued.
Foundry utilities payable accrued.
Depreciation on foundry equipment.
Other costs incurred on account.
3,400
5. Ending work-in-process consisted of Jobs 4 and 6.
6. Jobs 1 and 3 and one-half of Job 2 were sold on account for $20,000, $17,400, and $14,400,
respectively.
$ 1,480
2,360
Required
Open general ledger T accounts for Materials Inventory, Wages Payable, Foundry Overhead,
Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. Also set up sub-
sidiary T accounts as job order cost sheets for each job.
Prepare general journal entries to record the summarized transactions for the month, and post ap-
propriate entries to any accounts listed in requirement (a). Key each entry parenthetically to the
related number in the problem data.
5,280
7,440
10,320
Determine the balances of any accounts necessary and prepare schedules of jobs in ending work-
in-process and jobs in ending finished goods to confirm that they agree with the related control
accounts.
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