Journal Entries, Cost of Ending Inventories Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of $10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: Materials issued to Assembly, $24,000 Direct labor cost: Assembly, 500 hours at $9.20 per hour; Finishing, 400 hours at $7 per hour Overhead applied to production Goods transferred to Finishing, $32,400 Goods transferred to finished goods warehouse, $20,500 Actual overhead incurred, $10,000 Required: 1. Prepare the required journal entries for the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. a. fill in the blank e7ee6f071fc2f95_2 fill in the blank e7ee6f071fc2f95_4 b. fill in the blank e7ee6f071fc2f95_6 fill in the blank e7ee6f071fc2f95_7 fill in the blank e7ee6f071fc2f95_9 fill in the blank e7ee6f071fc2f95_10 fill in the blank e7ee6f071fc2f95_12 fill in the blank e7ee6f071fc2f95_13 c. fill in the blank e7ee6f071fc2f95_15 fill in the blank e7ee6f071fc2f95_16 fill in the blank e7ee6f071fc2f95_18 fill in the blank e7ee6f071fc2f95_19 fill in the blank e7ee6f071fc2f95_21 fill in the blank e7ee6f071fc2f95_22 d. fill in the blank e7ee6f071fc2f95_24 fill in the blank e7ee6f071fc2f95_26 e. fill in the blank e7ee6f071fc2f95_28 fill in the blank e7ee6f071fc2f95_30 f. fill in the blank e7ee6f071fc2f95_32 fill in the blank e7ee6f071fc2f95_34 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each department's ending work-in-process inventories. Ending Inventory Work in Process—Assembly $fill in the blank 5d44b0fcefae047_1 Work in Process—Finishing $fill in the blank 5d44b0fcefae047_2
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.
Baxter Company has two processing departments: Assembly and Finishing. A predetermined
- Materials issued to Assembly, $24,000
- Direct labor cost: Assembly, 500 hours at $9.20 per hour; Finishing, 400 hours at $7 per hour
- Overhead applied to production
- Goods transferred to Finishing, $32,400
- Goods transferred to finished goods warehouse, $20,500
- Actual overhead incurred, $10,000
Required:
1. Prepare the required journal entries for the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.
| a. | fill in the blank e7ee6f071fc2f95_2 | ||
| fill in the blank e7ee6f071fc2f95_4 | |||
| b. | fill in the blank e7ee6f071fc2f95_6 | fill in the blank e7ee6f071fc2f95_7 | |
| fill in the blank e7ee6f071fc2f95_9 | fill in the blank e7ee6f071fc2f95_10 | ||
| fill in the blank e7ee6f071fc2f95_12 | fill in the blank e7ee6f071fc2f95_13 | ||
| c. | fill in the blank e7ee6f071fc2f95_15 | fill in the blank e7ee6f071fc2f95_16 | |
| fill in the blank e7ee6f071fc2f95_18 | fill in the blank e7ee6f071fc2f95_19 | ||
| fill in the blank e7ee6f071fc2f95_21 | fill in the blank e7ee6f071fc2f95_22 | ||
| d. | fill in the blank e7ee6f071fc2f95_24 | ||
| fill in the blank e7ee6f071fc2f95_26 | |||
| e. | fill in the blank e7ee6f071fc2f95_28 | ||
| fill in the blank e7ee6f071fc2f95_30 | |||
| f. | fill in the blank e7ee6f071fc2f95_32 | ||
| fill in the blank e7ee6f071fc2f95_34 |
2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each department's ending work-in-process inventories.
| Ending Inventory | |
| Work in Process—Assembly | $fill in the blank 5d44b0fcefae047_1 |
| Work in Process—Finishing | $fill in the blank 5d44b0fcefae047_2 |
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