Patrick Company produces computer desks and uses a standard cost system. Standards are 7.85 pounds of material at $11.50 per pound and 2.2 hours of labor at a standard wage rate of $21.50. During December, Patrick Company produced and sold 2,660 desks. Materials purchases totaled 21,020 pounds at $13.00, for a total cost of $273,260. Materials usage totaled 21,972 pounds. Payroll totaled $185,038 for 16,060 hours worked at $27.20 per hour. Patrick Company sells as many units as can be produced, so does not maintain inventories other than direct materials; production costs can go directly to Cost of Goods Sold. Required: Prepare journal entries to record the transactions: Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Direct materials purchase Direct materials usage Direct labor incurred
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.
Patrick Company produces computer desks and uses a
Required:
Prepare journal entries to record the transactions:
Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No
Direct materials purchase
Direct materials usage
Direct labor incurred
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