Problem 17 Watson Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory accounts. The following transactions occurred in the first month of operations. Direct materials roquisitioned during the month: Job 101 Job 102 Job 103 1. P 20,000 16,000 24,000 c. Work in Process 63,200 Factory Overhead Applied 63,200 2. Direct labor incurred and charged to jobs during the month was: P 30,000 29,000 20,000 d. Factory Overhead Control Various credit accounts Job 101 60,000 Job 102 60,000 Job 103 e. Finished Goods 134,000 Work in process 134,000 3. Factory overhead was applied to jobs worked on using a predetermined overhead rate based on 80% of direct labor cost 4. Actual manufacturing overhead costs incurred during the month amounted to P 60,000. Job 101 ( 20,000 + 30,000 + 24,000) Job 103 ( 24,000 + 20,000 + 16,000) Total costs 74,000 60.000 134.000 5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were Requirement No. 2 a. FO Applied ( 20,000 x 80%) 16.000 completed during the month 品 显的
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.
I only want to know how the factory
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