Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—job P and job Q. Job P, consisting of 27,200 units, was completed and sold by the end of the March but job Q was still incomplete. The company uses a plantwide predetermined overhead rate based on direct labour-hours. The following additional information is available for the company as a whole and for jobs P and Q (all data and questions relate to the month of March): Estimated total fixed manufacturing overhead$14,400Estimated variable manufacturing overhead per direct labour-hour$1.50Estimated total direct labour-hours to be worked 3,600Total actual manufacturing overhead costs incurred$19,500 Job PJob QDirect materials$15,000$9,600Direct labour cost$40,500$12,000Actual direct labour-hours worked 2,700 800 Required: Assume the ending raw materials inventory is $2,600 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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.
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—job P and job Q. Job P, consisting of 27,200 units, was completed and sold by the end of the March but job Q was still incomplete. The company uses a plantwide predetermined
Estimated total fixed manufacturing overhead$14,400Estimated variable manufacturing overhead per direct labour-hour$1.50Estimated total direct labour-hours to be worked 3,600Total actual
Job PJob QDirect materials$15,000$9,600Direct labour cost$40,500$12,000Actual direct labour-hours worked 2,700 800
Required:
Assume the ending raw materials inventory is $2,600 and the company does not use any indirect materials. Prepare the journal entries to record raw materials purchases and the issuance of direct materials for use in production. (If no entry is required for a transaction/event, select "No
Step by step
Solved in 3 steps
