Job costs At the end of May, Calypso Company had completed Job 200 and Job 305. Job 200 is for 2,390 units, and Job 305 is for 2,053 units. Using the data from Exercises a, b and c, Determine the balance on the job cost sheets for Job 200 and Job 305 at the end of May. Determine the cost per unit for Job 200 and Job 305 at the end of May
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.
- Job costs
- At the end of May, Calypso Company had completed Job 200 and Job 305. Job 200 is for 2,390 units, and Job 305 is for 2,053 units.
Using the data from Exercises a, b and c,
- Determine the balance on the
job cost sheets for Job 200 and Job 305 at the end of May. - Determine the cost per unit for Job 200 and Job 305 at the end of May.
For References only exercises a, b, and c
a. Issuance of materials
- On May 7, Calypso Company purchased on account 10,000 units of raw materials at $8 per unit. During May, raw materials were requisitioned for production as follows: 7,500 units for Job 200 at $8 per unit and 1,480 units for Job 305 at $5 per unit. Journalize the entry on March 7 to record the purchase and on March 30 to record the requisition from the materials' storeroom.
b. Direct labor costs
- During May, Calypso Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305. Journalize the entry to record the flow of labor costs into production during May.
c. Applying factory
- Calypso Company estimates that total
factory overhead costs will be $620,000 for the year. Direct labor hours are estimated to be 80,000. For Calypso Company,- Determine the predetermined factory overhead rate using direct labor hours as the activity base.
- Determine the amount of factory overhead applied to jobs 200 and 305 in May using the data on direct labor hours from Exercise 2.
- Prepare the
journal entry to apply factory overhead to both jobs in August according to the predetermined overhead rate.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
