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, $22,280. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $2,230 $1,860 302 2,720 2,510 303 1,810 1,230 304 6,110 4,610 305 3,880 3,520 306 2,830 2,230 For general factory use 760 2,750 Factory overhead costs incurred on account, $4,260. Depreciation of factory machinery and equipment, $1,320. The factory overhead rate is $55 per machine hour. Machine hours used: Job Machine Hours 301 16 302 26 303 43 304 84 305 42 306 25 Total 236 Jobs completed: 301, 302, 303, and 305. Jobs were shipped and customers were billed as follows: Job 301, $5,960; Job 302, $7,990; Job 303, $15,670. Required: 1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank. 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. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of completed jobs on hand to support the balance in the fini
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.
Kaymer Industries Inc. uses a
- Materials purchased on account, $22,280.
- Materials requisitioned and factory labor used:
Job Materials Factory Labor 301 $2,230 $1,860 302 2,720 2,510 303 1,810 1,230 304 6,110 4,610 305 3,880 3,520 306 2,830 2,230 For general factory use 760 2,750 Factory overhead costs incurred on account, $4,260.Depreciation of factory machinery and equipment, $1,320.- The factory overhead rate is $55 per machine hour. Machine hours used:
Job Machine Hours 301 16 302 26 303 43 304 84 305 42 306 25 Total 236 - Jobs completed: 301, 302, 303, and 305.
- Jobs were shipped and customers were billed as follows: Job 301, $5,960; Job 302, $7,990; Job 303, $15,670.
Required:
1.
2.
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 3 images
