Purchased raw materials on account $53,000. Raw Materials of $36,100 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,400 was classified as indirect materials. Factory labor costs incurred were $61,300. Time tickets indicated that $54,300 was direct labor and $7,000 was indirect labor. Manufacturing overhead costs incurred on account were $82,000. Manufacturing overhead was applied at the rate of 160% of direct labor cost. 7. Goods costing $92,200 were completed and transferred to finished goods. 8. Finished goods costing $80,900 to manufacture were sold. 1. 2. 3. 4. 5. 6. Record the transactions. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).) Manufacturing Costs Factory Labor 1. Purchased raw materials 2. Direct materials 2. Indirect materials 3. Incurred factory labor 4. Direct labor 4. Indirect labor 5. Overhead costs incurred 6. Assigned overhead Raw Materials Inventory 100 Manufacturing Overhead $ 0000000 W
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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