On january 1, there were two jobs in process at the Bondview Company. Job No. J-1 J-2 Direct Materials $90 $20 Direct labor 70 40 Materials Inventory at January 1 totaled $460. Materials purchase during the month were $60. A requision for $10 in indirect materials was filled during the month. On january 1, finished goods inventory considered of two jobs: Job no. D-5 costing $200 and Job No. D-5 with cost of $80. both these jobs were sold during the month for $350. Also during January, Job Nos. J-1 and J-2 were completed. Completing Job No. J-1 required an additional $30 of direct labor. The completion of Job No. J-2 included $50 of direct material and $100 of direct Labor. Job No. A-40 was started during the period but was not finished. A total of $160 of direct materials was brought from the storeroom for all jobs during the period, and total direct labor costs during the month amounted to $200. Factory overhead was applied at 150 percent of direct labor costs to all of the jobs, including those in begining inventory. Required: Prepare Job order costs sheet for Job No. J-1 and J-2.
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.
On january 1, there were two jobs in process at the Bondview Company. Job No. J-1 J-2 Direct Materials $90 $20 Direct labor 70 40 Materials Inventory at January 1 totaled $460. Materials purchase during the month were $60. A requision for $10 in indirect materials was filled during the month. On january 1, finished goods inventory considered of two jobs: Job no. D-5 costing $200 and Job No. D-5 with cost of $80. both these jobs were sold during the month for $350. Also during January, Job Nos. J-1 and J-2 were completed. Completing Job No. J-1 required an additional $30 of direct labor. The completion of Job No. J-2 included $50 of direct material and $100 of direct Labor. Job No. A-40 was started during the period but was not finished. A total of $160 of direct materials was brought from the storeroom for all jobs during the period, and total direct labor costs during the month amounted to $200. Factory
Required: Prepare
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