Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on January 31. Record item g as 2 entries.
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.
Entries and Schedules for Unfinished Jobs and Completed Jobs
| a. Materials purchased on account, $33,100. | |
| b. Materials requisitioned and factory labor used: |
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Job
|
Materials
|
Factory Labor
|
| 301 | $2,740 | $5,460 |
| 302 | 3,980 | 2,930 |
| 303 | 2,570 | 3,070 |
| 304 | 8,850 | 8,520 |
| 305 | 6,210 | 1,840 |
| 306 | 4,290 | 6,110 |
| For general factory use | 1,200 | 4,520 |
| c. |
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| d. |
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| e. The factory overhead rate is $65 per machine hour. Machine hours used: |
| Job | Machine Hours |
| 301 | 52 |
| 302 | 28 |
| 303 | 44 |
| 304 | 65 |
| 305 | 36 |
| 306 | 79 |
| Total | 304 |
| f. Jobs completed: 301, 302, 303, and 305. | |
| g. Jobs were shipped and customers were billed as follows: Job 301, $23,450; Job 302, $19,210; Job 303, $17,360. |
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kaymer Industries Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Job costing refers to an accounting method which is used by the company to track the individual cost of a project and job.
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