Output No. 1 Ellen Joyce Company is engaged in the manufacture of engines which are made only on customers' orders and to their specifications. During January, the company worked on Jobs 201, 202, 203, and 204. The following figures summarize the cost records for the month. lob 201 lob 202 lob 203 lob 204 Direct Materials put into process: Jan. 2 18 P15,000 20,000 15,000 P5,000 16,000 1,000 P5,000 10,000 3,500 22 P6,000 2,000 28 Direct labor costs week ending Jan. 2 6. 1,000 27,000 1 32,000 20,000 1,000 9.000 16 27,000 3,000 23 5,000 18,000 17,500 1,500 30 Factory overhead Engines completed 60,000 100 11,500 9,000 32,000 60 25 Jobs 201 and 202 have been completed and delivered to the customer at a total selling price of P350,000. Job 204 is still in process. There was no work in process at the beginning of the month. Required: 1. Prepare the summary journal entries for the month to record the preceding information. (Assume a work in process accounts is maintained for each job.) 2. Prepare a cost sheet for each job. 3. Prepare statement of cost of goods manufactured and sold.
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.
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Ellen Joyce Company is engaged in the manufacture of engines which are made only on
customers' orders and to their specifications. During January, the company worked on Jobs
201, 202, 203, and 204. The following figures summarize the cost records for the month.
Answe
lob 201
lob 202
lob 203
lob 204
Direct Materials put into
process:
Unit 1.
Jan. 2
P15,000
20,000
15,000
P5,000
16,000
1,000
18
1. Cost A
P5,000
10,000
3,500
activity
the esta
22
P6,000
2,000
28
Direct labor costs
activiti
week ending
Jan. 2
1,000
27,000
32,000
20,000 3,000
1,000
2. Man
6.
9.000
for use
16
27,000
23
5,000
18,000
17,500
1,500
11,500
9,000
30
Factory overhead
Engines completed
60,000
32,000
100
60
25
CO
000
Jobs 201 and 202 have been completed and delivered to the customer at a total selling price
of P350,000. Job 204 is still in process. There was no work in process at the beginning of the
Mea
month.
Required:
1. Prepare the summary journal entries for the month to record the preceding information.
(Assume a work in process accounts is maintained for each job.)
Info
2. Prepare a cost sheet for each job.
Oj
3. Prepare statement of cost of goods manufactured and sold.
3."
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