Metropolitans Manufacturing generated the following activity for July for its current jobs. Total costs accumulated in the Work-in-Process account. Manufacturing overhead was allocated at $32 per machine hour used. 1. Complete the Job Costs for each job listed below. Job 123 Job 124 Job 125 Total July 1 Balance $16,230 $12,680 $11,170 $40,080 Direct Materials Used $11,710 $18,920 $11,990 $42,620 Direct Labor Assigned to Jobs $14,520 $21,460 $7,480 $43,460 Manufacturing Overhead allocated to jobs Total Cost per Job Machine Hours used per job 410 390 70 2. Prepare the journal entry for completion of jobs 123 and 124 in July. Journal Date Description Debit Credit Open a T-account for Work-in-Process Inventory. 3. Post the journal entry made in above. Compute the ending balance in the Work-in-Process Inventory account on July 31. Work-in-Process
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.
1. Complete the
| Job 123 | Job 124 | Job 125 | Total | |
|---|---|---|---|---|
| July 1 Balance | $16,230 | $12,680 | $11,170 | $40,080 |
| Direct Materials Used | $11,710 | $18,920 | $11,990 | $42,620 |
| Direct Labor Assigned to Jobs | $14,520 | $21,460 | $7,480 | $43,460 |
| Manufacturing Overhead allocated to jobs | ||||
| Total Cost per Job | ||||
| Machine Hours used per job | 410 | 390 | 70 |
2. Prepare the
Journal
| Date | Description | Debit | Credit |
|---|---|---|---|
Open a T-account for Work-in-Process Inventory.
3.
Work-in-Process
| Debit | Credit |
|---|---|
| Double line | Double line |
4. Prepare the journal entry needed to record the sale on account of Job 124 in the amount of $84,190. Also, prepare the journal entry to record the Cost of Goods sold for Job 124.
Journal
| Date | Description | Debit | Credit |
|---|---|---|---|
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
