Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,400 direct labor $11,040, and manufacturing overhead $14,720. As of January 1, Job 49 had been completed at a cost of $82,800 and w part of finished goods inventory. There was a $13,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and were sold on account during the month for $112,240 and $145,360, respectively. The following additional events occurred during t month. 1. 2. 3. 4. 5. Purchased additional raw materials of $82,800 on account. Incurred factory labor costs of $64,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,040; and various other manufacturing overhead costs on account $14,720. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials 50 51 52 $9,200 35,880 27,600 Direct Labor $4,600 23,000 18,400 Assigned indirect materials of $15,640 and indirect labor of $18,400.
Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,400 direct labor $11,040, and manufacturing overhead $14,720. As of January 1, Job 49 had been completed at a cost of $82,800 and w part of finished goods inventory. There was a $13,800 balance in the Raw Materials Inventory account on January 1. During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and were sold on account during the month for $112,240 and $145,360, respectively. The following additional events occurred during t month. 1. 2. 3. 4. 5. Purchased additional raw materials of $82,800 on account. Incurred factory labor costs of $64,400. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,040; and various other manufacturing overhead costs on account $14,720. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials 50 51 52 $9,200 35,880 27,600 Direct Labor $4,600 23,000 18,400 Assigned indirect materials of $15,640 and indirect labor of $18,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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Transcribed Image Text:Sheridan Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1,
2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $18,400,
direct labor $11,040, and manufacturing overhead $14,720. As of January 1, Job 49 had been completed at a cost of $82,800 and was
part of finished goods inventory. There was a $13,800 balance in the Raw Materials Inventory account on January 1.
During the month of January, Sheridan Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50
were sold on account during the month for $112,240 and $145,360, respectively. The following additional events occurred during the
month.
1.
2.
3.
4.
5.
Purchased additional raw materials of $82,800 on account.
Incurred factory labor costs of $64,400.
Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,040; and various other
manufacturing overhead costs on account $14,720.
Assigned direct materials and direct labor to jobs as follows.
Job No.
50
51
52
Direct Materials
$9,200
35,880
27,600
Direct Labor
$4,600
23,000
18,400
Assigned indirect materials of $15,640 and indirect labor of $18,400.
Transcribed Image Text:Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs
to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit
entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
(1)
(2)
(3)
Debit
Credit
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