Shown below are the job cost-related accounts for the law firm of Johnson, Williams, and Morton and their manufacturing equivalents: Law Firm Accounts Supplies Salaries Payable Operating Overhead Work in Process Cost of Completed Work 1. 2. Cost data for the month of March follow. 3. 4. 5. 6. 1. 2. Journalize the transactions for March. (List all debit entries before credit entries. Credit account titles are automatically indented wh the amount is entered. Do not indent manually.) 3. No. Account Titles and Explanation 4. 5. 6. Bal. 1. Bal. Purchased supplies on account $1,620. Issued supplies of $1,600 (60% direct and 40% indirect). Time cards for the month indicated labour costs of $60,900 (80% direct and 20% indirect). Operating overhead costs incurred for cash totalled $41,600. Operating overhead is applied at a rate of 90% of direct labour cost. Work completed totalled $74,800. Supplies Work in Process Accounts Payable Operating Overhead Work in Process Supplies Operating Overhead Operating Overhead Salaries Payable V Work in Process V Manufacturing Company Accounts Raw Materials Cash Payroll Liabilities Manufacturing Overhead Work in Process Inventory Finished Goods Inventory Operating Overhead Cost of Completed Work Work in Process Debit Work in Process 3. 4. 6. V V 1620 V 960 640 48720 Determine the balance of the Work in Process account. Use a T account. (Assume no opening Work in Process.) (Post entries in the order of journal entries presented in the previous part.) 12180 41600 43848 74800 Credit 1620 1600 60900 41600 43848 74800
Shown below are the job cost-related accounts for the law firm of Johnson, Williams, and Morton and their manufacturing equivalents: Law Firm Accounts Supplies Salaries Payable Operating Overhead Work in Process Cost of Completed Work 1. 2. Cost data for the month of March follow. 3. 4. 5. 6. 1. 2. Journalize the transactions for March. (List all debit entries before credit entries. Credit account titles are automatically indented wh the amount is entered. Do not indent manually.) 3. No. Account Titles and Explanation 4. 5. 6. Bal. 1. Bal. Purchased supplies on account $1,620. Issued supplies of $1,600 (60% direct and 40% indirect). Time cards for the month indicated labour costs of $60,900 (80% direct and 20% indirect). Operating overhead costs incurred for cash totalled $41,600. Operating overhead is applied at a rate of 90% of direct labour cost. Work completed totalled $74,800. Supplies Work in Process Accounts Payable Operating Overhead Work in Process Supplies Operating Overhead Operating Overhead Salaries Payable V Work in Process V Manufacturing Company Accounts Raw Materials Cash Payroll Liabilities Manufacturing Overhead Work in Process Inventory Finished Goods Inventory Operating Overhead Cost of Completed Work Work in Process Debit Work in Process 3. 4. 6. V V 1620 V 960 640 48720 Determine the balance of the Work in Process account. Use a T account. (Assume no opening Work in Process.) (Post entries in the order of journal entries presented in the previous part.) 12180 41600 43848 74800 Credit 1620 1600 60900 41600 43848 74800
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:Shown below are the job cost-related accounts for the law firm of Johnson, Williams, and Morton and their manufacturing
equivalents:
Law Firm Accounts
Supplies
Salaries Payable
Operating Overhead
Work in Process
Cost of Completed Work
2.
Cost data for the month of March follow.
3.
1. Purchased supplies on account $1,620.
4.
5.
6.
1.
2.
Journalize the transactions for March. (List all debit entries before credit entries. Credit account titles are automatically indented whe
the amount is entered. Do not indent manually.)
3.
No. Account Titles and Explanation
4.
5.
6.
Bal.
1.
2.
Bal.
Issued supplies of $1,600 (60% direct and 40% indirect).
Time cards for the month indicated labour costs of $60,900 (80% direct and 20% indirect).
Operating overhead costs incurred for cash totalled $41,600.
Operating overhead is applied at a rate of 90% of direct labour cost.
Work completed totalled $74,800.
Supplies
Accounts Payable
Work in Process
Operating Overhead
Supplies
Work in Process
Operating Overhead
Salaries Payable
Manufacturing Company Accounts
Operating Overhead
Raw Materials
Cash
Payroll Liabilities
Manufacturing Overhead
Work in Process Inventory
Finished Goods Inventory
Work in Process
Operating Overhead
Work in Process
Cost of Completed Work
Debit
Work in Process
3. v
4
5.
6.
V
1620
V
960
640
48720
12180
Determine the balance of the Work in Process account. Use a T account. (Assume no opening Work in Process.) (Post entries in the
order of journal entries presented in the previous part.)
41600
43848
74800
Credit
1620
1600
60900
41600
43848
74800
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