Sheridan Incorporated has the following information available about the jobs worked on during the month of February 2022: Job Number 110 111 112 Materials Labour $26,300 35,000 20,000 $22,900 $18,000 25,800 31,800 16,700 Overhead Total Costs $67,200 13,060 Account Titles and Explanation 92,600 49,760 Jobs 110 and 111 were completed in February and Job 111 was sold on account for $92,200 in February. Journalize the entries for the completion of the two jobs and the sale of Job 111. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit
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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