The following Information relates to the manufacturing operations of Trevino Golf Company during the month of March. The company uses job order costing. a. Purchases of direct materials during the month amount to $57,000. (All purchases were made on account.) b. Materials requisitions issued by the Production Department during the month total $56,000. c. Time cards of direct workers show 2,000 hours worked on various jobs during the month, for a total direct labor cost of $32,000. d. Direct workers were paid $29,000 in March. e. Actual overhead costs for the month amount to $34,000 (for simplicity, you may credit Accounts Payable). 1. Overhead is applied to jobs at a rate of $18 per direct labor hour. g. Jobs with total accumulated costs of $110,000 were completed during the month. h. During March, units costing $140,000 were sold for $220,000. (All sales were made on account.) I. Any balance remaining in the Manufacturing Overhead control account at the end of the month is closed directly to Cost of Goods Sold. Required: Prepare general Journal entries to summarize each of these transactions in the company's general ledger accounts. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record the purchases of direct materials during March. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit 10 View general journal >
The following Information relates to the manufacturing operations of Trevino Golf Company during the month of March. The company uses job order costing. a. Purchases of direct materials during the month amount to $57,000. (All purchases were made on account.) b. Materials requisitions issued by the Production Department during the month total $56,000. c. Time cards of direct workers show 2,000 hours worked on various jobs during the month, for a total direct labor cost of $32,000. d. Direct workers were paid $29,000 in March. e. Actual overhead costs for the month amount to $34,000 (for simplicity, you may credit Accounts Payable). 1. Overhead is applied to jobs at a rate of $18 per direct labor hour. g. Jobs with total accumulated costs of $110,000 were completed during the month. h. During March, units costing $140,000 were sold for $220,000. (All sales were made on account.) I. Any balance remaining in the Manufacturing Overhead control account at the end of the month is closed directly to Cost of Goods Sold. Required: Prepare general Journal entries to summarize each of these transactions in the company's general ledger accounts. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record the purchases of direct materials during March. Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit 10 View general journal >
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:The following Information relates to the manufacturing operations of Trevino Golf Company during the month of March. The company
uses job order costing.
a. Purchases of direct materials during the month amount to $57,000. (All purchases were made on account.)
b. Materials requisitions issued by the Production Department during the month total $56,000.
c. Time cards of direct workers show 2,000 hours worked on various jobs during the month, for a total direct labor cost of $32,000.
d. Direct workers were paid $29,000 in March.
e. Actual overhead costs for the month amount to $34,000 (for simplicity, you may credit Accounts Payable).
1. Overhead is applied to jobs at a rate of $18 per direct labor hour.
g. Jobs with total accumulated costs of $110,000 were completed during the month.
h. During March, units costing $140,000 were sold for $220,000. (All sales were made on account.)
I. Any balance remaining in the Manufacturing Overhead control account at the end of the month is closed directly to Cost of Goods
Sold.
Required:
Prepare general Journal entries to summarize each of these transactions in the company's general ledger accounts.
Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.
View transaction list
Journal entry worksheet
<
1 2 3 4 5 6 7 8 9
Record the purchases of direct materials during March.
Note: Enter debits before credits.
Transaction
a.
Record entry
General Journal
Clear entry
Debit
Credit
10
View general journal
>
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