Job order costing 1- Assume that the following transactions were received from the record of Almda Textile Factory forthe month of June, 2014. a.Purchase of materials (Direct and indirect) Br. 89,000 on accountb. Materials sent to mfg plant floor – Direct materials Br. 81,000, indirect materials Br. 4000Manufacturing wages incurred : Direct Br. 39,000, Indirect Br. 15,000d. Payment of Total manufacturing payroll for the month Br. 54,000Additional manufacturing overhead costs incurred during the month consists of utilities and repairs Br. 25,000 and accumulated depreciation on factory plant Br. 50,000Allocation of manufacturing OH to production Br. 80,000Goods costing Br. 188,000 were completed during the periodh. Goods costing Br. 180,000 were sold on account for Br. 220,000 The factory incurred the following nonmanufacturing expenses last month: Br. 2, 000 commissions to sales agent, Br. 1,000 advertising expenses, Br. 3,000 depreciation on office equipment and Br. 1,500 other selling and administrative expenses. Instruction: Prepare the necessary Journal entries from the above information.
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.
1- Assume that the following transactions were received from the record of Almda Textile Factory for
the month of June, 2014.
a.Purchase of materials (Direct and indirect) Br. 89,000 on account
b. Materials sent to mfg plant floor – Direct materials Br. 81,000, indirect materials Br. 4000
Manufacturing wages incurred : Direct Br. 39,000, Indirect Br. 15,000
d. Payment of Total manufacturing payroll for the month Br. 54,000
Additional
Br. 25,000 and
Allocation of manufacturing OH to production Br. 80,000
Goods costing Br. 188,000 were completed during the period
h. Goods costing Br. 180,000 were sold on account for Br. 220,000
The factory incurred the following nonmanufacturing expenses last month: Br. 2, 000 commissions
to sales agent, Br. 1,000 advertising expenses, Br. 3,000 depreciation on office equipment and Br.
1,500 other selling and administrative expenses.
Instruction: Prepare the necessary
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