Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: Cutting Assembly Finishing direct materials $7,000 $10,000 $3,000 direct labor 3,000 14,000 2,000 applied overhead 4,000 5,000 6,000 There were no work in process inventories and 1,000 podiums were produced. The journal entry to assign costs to the Assembly process would be a. Raw Materials 20,000 Payroll 19,000 Overhead Control 15,000 Work in Process - Assembly 54,000 b. Raw Materials 10,000 Payroll 14,000 Overhead Control 5,000 Work in Process - Assembly 29,000 c. Work in Process - Assembly 29,000 Raw Materials 10,000 Payroll 14,000 Overhead Control 5,000 d. Work in Process - Assembly 54,000 Raw Materials 20,000 Payroll 19,000 Overhead Control 15,000 e. None of these choices are correct.
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.
| Cutting | Assembly | Finishing | |
| direct materials | $7,000 | $10,000 | $3,000 |
| direct labor | 3,000 | 14,000 | 2,000 |
| applied |
4,000 | 5,000 | 6,000 |
There were no work in process inventories and 1,000 podiums were produced.
The
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