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 Cost incurred for the period Raw materials purchases Factory payroll Factory overhead (actual) Beginning of Period Indirect materials used Indirect labor used other overhead costs View transaction list $ 43,000 10,200 63,000 A Journal entry worksheet B 1. Incurred other actual overhead costs (all paid in Cash). 2. Applied overhead to work in process. Prepare journal entries for the above transactions for the period. End of Period $ 52,000 21,300 35,600 $ 210,000 345,000 15,000 80,000 120,000 all paid in Cash)
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 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
Cost incurred for the period
Raw materials purchases
Factory payroll
Factory overhead (actual)
Indirect materials used
Indirect labor used
other overhead costs
Beginning of
Period
View transaction list
A
Journal entry worksheet
$ 43,000
10,200
63,000
1. Incurred other actual overhead costs (all paid in Cash).
2. Applied overhead to work in process.
Prepare journal entries for the above transactions for the period.
B
Transaction
1
Note: Enter debits before credits.
End of Period
$ 52,000
21,300
35,600
$ 210,000
345,000
15,000
80,000
120,000
Record the entry for other actual overhead costs incurred (all paid in Cash).
General Journal
Debit
Credit
>
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