Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows: Fabric $22,000 Polyester filling 6,600 Lumber 49,300 Glue 2,100 The materials purchased during April on account are summarized from the receiving reports as follows: Fabric $111,300 Polyester filling 154,700 Lumber 305,000 Glue 10,600 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $40,100 $50,500 $135,100 $225,700 Job 602 30,900 54,900 118,300 204,100 Job 603 28,500 37,300 65,800 131,600 Factory overhead-indirect materials $5,200 5,200 Total $99,500 $142,700 $319,200 $5,200 $566,600 The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank. a. fill in the blank 3abc48fe6faeffd_2 fill in the blank 3abc48fe6faeffd_3 fill in the blank 3abc48fe6faeffd_5 fill in the blank 3abc48fe6faeffd_6 b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank. b. fill in the blank a8bc61ff6001067_2 fill in the blank a8bc61ff6001067_3 fill in the blank a8bc61ff6001067_5 fill in the blank a8bc61ff6001067_6 fill in the blank a8bc61ff6001067_8 fill in the blank a8bc61ff6001067_9 c. Determine the April 30 balances that would be shown in the materials ledger accounts. Fabric Polyester Filling Lumber Glue Balance, April 30 $fill in the blank 580110ff7066fd7_1 $fill in the blank 580110ff7066fd7_2 $fill in the blank 580110ff7066fd7_3 $fill in the blank 580110ff7066fd7_4
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 for Materials
Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a
| Fabric | $22,000 |
| Polyester filling | 6,600 |
| Lumber | 49,300 |
| Glue | 2,100 |
The materials purchased during April on account are summarized from the receiving reports as follows:
| Fabric | $111,300 |
| Polyester filling | 154,700 |
| Lumber | 305,000 |
| Glue | 10,600 |
Materials were requisitioned to individual jobs as follows:
| Fabric | Polyester Filling | Lumber | Glue | Total | ||||||
| Job 601 | $40,100 | $50,500 | $135,100 | $225,700 | ||||||
| Job 602 | 30,900 | 54,900 | 118,300 | 204,100 | ||||||
| Job 603 | 28,500 | 37,300 | 65,800 | 131,600 | ||||||
| Factory |
$5,200 | 5,200 | ||||||||
| Total | $99,500 | $142,700 | $319,200 | $5,200 | $566,600 |
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a.
| a. | fill in the blank 3abc48fe6faeffd_2 | fill in the blank 3abc48fe6faeffd_3 | |
| fill in the blank 3abc48fe6faeffd_5 | fill in the blank 3abc48fe6faeffd_6 |
b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank.
| b. | fill in the blank a8bc61ff6001067_2 | fill in the blank a8bc61ff6001067_3 | |
| fill in the blank a8bc61ff6001067_5 | fill in the blank a8bc61ff6001067_6 | ||
| fill in the blank a8bc61ff6001067_8 | fill in the blank a8bc61ff6001067_9 |
c. Determine the April 30 balances that would be shown in the materials ledger accounts.
| Fabric | Polyester Filling | Lumber | Glue | |
| Balance, April 30 | $fill in the blank 580110ff7066fd7_1 | $fill in the blank 580110ff7066fd7_2 | $fill in the blank 580110ff7066fd7_3 | $fill in the blank 580110ff7066fd7_4 |
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