Requlred: a. Prepare journal entries to record the flow of costs for operations during May. b. Calculate the amount of over- or underapplied overhead for the month. c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory. Complete this question by entering your answers in the tabs below. Required A Required 8 Required C Prepare journal entries to record the flow of costs for operations during May. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
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.
![1
Kim's Asphalt does driveway and parking lot resurfacing work for large commercial clients as well as small residential clients. An
inventory of materials and equipment is on hand at all times so that work can start as quickly as possible. Special equipment is ordered
as required. On May 1, the Materials and Equipment Inventory account had a balance of $44.000. The Work-in-Process Inventory
account is maintained to record costs of work not yet complete. There were two such jobs on May 1 with the following costs.
Job 27
Job 33
Highlands Mal1
$16,575
14,300
4,290
Pine Ridge Estates
$ 53,300
26,658
7,995
Materials and equipment
Direct labor
Overhead (applied)
Overhead has been applied at 30 percent of the costs of direct labor.
During May, Kim's Asphalt started two new jobs. Additional work was carried out on Jobs 27 and 33. with the latter completed and
billed to Pine Ridge Estates. Details on the costs incurred on jobs during May follow.
Job
Materials and equipment
Direct labor (wages payable)
27
33
34
35
$3,800 $5,68e
5,300
7,550
$5,400 $3,700
6,700
2,488
Other May Events
1. Received $13.300 payment on Job 24 delivered to customer in April.
2. Purchased materials and equipment for $10,200 on account.
3. Billed Pine Ridge Estates $138,000 and received payment for $115.000 of that amount.
4. Determined that payroll for indirect labor personnel totaled $730.
5. Issued supplies and incidental materials for current jobs costing $235.
6. Recorded overhead and advertising costs for the operation as follows (all cash except equipment depreciation).
Property taxes
storage area re
Truck and delivery cost
Advertising and promotion campaign
Inspections
Telephone and other miscellaneous
Equipment depreciation
$630
755
400
680
280
405
530](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79152857-a201-40ed-b5d1-c0286e8cec27%2F2d7c5a30-5073-4d2a-841f-e63d94cbfe89%2Fiqgqr9d_processed.png&w=3840&q=75)
![Requlred:
a. Prepare journal entries to record the flow of costs for operations during May.
b. Calculate the amount of over- or underapplied overhead for the month.
c. Determine inventory balances for Materials and Equipment Inventory and Work-in-process inventory.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Prepare journal entries to record the flow of costs for operations during May. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
E
G
Record charges to work in process.
Note: Enter debits before credits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79152857-a201-40ed-b5d1-c0286e8cec27%2F2d7c5a30-5073-4d2a-841f-e63d94cbfe89%2Fym7o8b_processed.png&w=3840&q=75)
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