prepare summary journal entries for april (without disposing of under over allocated conversion costs.) Assume no direct materials variances. Post the entries in requirement 1 to T-accounts for applicable inventory control, conversion costs control, conversion costs allocated and cost of goods sold. Under an ideal JIT production sytsem how would the amounts in your journal entries differ from those in requirement 1
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.
The lim company has a plant that manufacturers transistor radios. the production time is only a few minutes per unit. the company uses just in time production system and a backflush costing sytem with two trigger points for
- purchases of direct (raw) materials
- completion of goods finished units of product
There are no beginning inventories the following data pertain to April manufacturing:
Direct material purchased 8,800,000
direct materials used 8,500,000
conversion cost incurred 4,220,000
Allocation of conversion costs 4,000,000
costs transferred to finished goods 12,500,000
Cost of goods sold 11,900,000
Required:
- prepare summary journal entries for april (without disposing of under over allocated conversion costs.) Assume no direct materials variances.
Post the entries in requirement 1 to T-accounts for applicable inventory control, conversion costs control, conversion costs allocated and cost of goods sold.- Under an ideal JIT production sytsem how would the amounts in your journal entries differ from those in requirement 1
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