Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.
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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Entries and Schedules for Unfinished Jobs and Completed Jobs
Kaymer Industries Inc. uses a
job order cost system. The following data summarize the operations related to production for January, the first month of operations:- Materials purchased on account, $31,150.
- Materials requisitioned and factory labor used:
Job Materials Factory Labor 301 $3,100 $2,390 302 3,780 3,230 303 2,510 1,580 304 8,490 5,930 305 5,390 4,520 306 3,940 2,870 For general factory use 1,050 3,540 Factory overhead costs incurred on account, $5,920.Depreciation of factory machinery and equipment, $1,700.- The factory overhead rate is $45 per machine hour. Machine hours used:
Job Machine Hours 301 30 302 33 303 15 304 84 305 38 306 21 Total 221 - Jobs completed: 301, 302, 303, and 305.
- Jobs were shipped and customers were billed as follows: Job 301, $8,210; Job 302, $10,190; Job 303, $13,820.
Required:
1.
Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.
Entries Description Debit Credit a. Materials fill in the blank 2 fill in the blank 3 Accounts Payable fill in the blank 5 fill in the blank 6 b. Work in Process fill in the blank 8 fill in the blank 9 Factory Overhead fill in the blank 11 fill in the blank 12 Materials fill in the blank 14 fill in the blank 15 Wages Payable fill in the blank 17 fill in the blank 18 c. Factory Overhead fill in the blank 20 fill in the blank 21 Accounts Payable fill in the blank 23 fill in the blank 24 d. Factory Overhead fill in the blank 26 fill in the blank 27 Accumulated Depreciation -Machinery and Equipmentfill in the blank 29 fill in the blank 30 e. Work in Process fill in the blank 32 fill in the blank 33 Factory Overhead fill in the blank 35 fill in the blank 36 f. Finished Goods fill in the blank 38 fill in the blank 39 Work in Process fill in the blank 41 fill in the blank 42 g. Accounts Receivable fill in the blank 44 fill in the blank 45 Sales fill in the blank 47 fill in the blank 48 Cost of Goods Sold fill in the blank 50 fill in the blank 51 Finished Goods fill in the blank 53 fill in the blank 54 2.
Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.Work in Process (b) fill in the blank 56 (f) fill in the blank 58 (d) fill in the blank 60 Bal. fill in the blank 61
Finished Goods (f) fill in the blank 63 (g) fill in the blank 65 Bal. fill in the blank 66 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
Kaymer Industries Inc.
Schedule of Unfinished JobsJob Direct Materials Direct Labor Factory Overhead Total No. 304 $fill in the blank 68 $fill in the blank 69 $fill in the blank 70 $fill in the blank 71 fill in the blank 73 fill in the blank 74 fill in the blank 75 fill in the blank 76 Balance of Work in Process, January 30 $fill in the blank 77
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Kaymer Industries Inc.
Schedule of Completed JobsJob Direct Materials Direct Labor Factory Overhead Total $fill in the blank 79 $fill in the blank 80 $fill in the blank 81 $fill in the blank 82
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