[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 55% of direct labor cost. Inventories Beginning of periodEnd of Period Raw materials $ 43,000 $ 52,000 9,700 18,300 Work in process Finished goods 58,000 33,300 Cost incurred for the period Raw materials purchases $ 190,000 100,000 Factory payroll Factory overhead (actual) Indirect materials used Indirect labor used Other overhead costs 11,000 23,000 117,000 1. Raw materials purchases for cash. 2. Direct materials used. 3. Indirect materials used. 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 55% of direct labor cost.
Beginning of periodEnd of Period
$ 43,000
$ 52,000
18,300
33,300
Inventories
Raw materials.
Work in process
Finished goods
Cost incurred for the period
Raw materials purchases $ 190,000
100,000
Factory payroll
Factory overhead (actual)
9,700
58,000
Indirect materials used
Indirect labor used
Other overhead costs
11,000
23,000
117,000
1. Raw materials purchases for cash.
2. Direct materials used.
3. Indirect materials used.
Prepare journal entries for the above transactions for
the period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f2c8743-ae88-4335-84a4-bac6b6124b54%2F8328dbf6-098d-46fa-9936-72400a986647%2F7k5ifpg_processed.jpeg&w=3840&q=75)
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