[The following information applies to the questions displayed below.] The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 70% of direct labor cost. Inventories Raw materials Work in process Beginning of Period $ 43,000 10,200 63,000 End of Period $ 52,000 21,300 35,600 Finished goods Raw materials purchases Cost incurred for the period Factory payroll $ 210,000 345,000 Factory overhead (actual) Indirect materials used 15,000 Indirect labor used. 80,000 Other overhead costs 120,000 1. Direct labor used (recorded as factory wages payable). 2. Indirect labor used (recorded as factory wages payable). Prepare journal entries for the above transactions for the period.
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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![[The following information applies to the questions displayed below.]
The following information is available for ADT Company, which produces special-order security products and uses a job
order costing system. Overhead is applied using a predetermined overhead rate of 70% of direct labor cost.
Inventories
Raw materials
Work in process
Finished goods
Beginning of
Period
$ 43,000
10,200
63,000
End of
Period
$ 52,000
21,300
35,600
Raw materials purchases
Cost incurred for the period
Factory payroll
$ 210,000
345,000
Factory overhead (actual)
Indirect materials used
15,000
Indirect labor used
80,000
Other overhead costs
120,000
1. Direct labor used (recorded as factory wages payable).
2. Indirect labor used (recorded as factory wages payable).
Prepare journal entries for the above transactions for the period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9b76313-7cfb-4265-906b-d07c2811188a%2F7780316c-b45a-4c6e-bfab-c47544efabfc%2Fghgf497_processed.png&w=3840&q=75)
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