The following information relates tot he manufacturing operations of O'Shaughnessy Mfg Co during the month of March. The company uses job order costing. a. Purchases of direct materials during the month amount ot $59,700 (all purchases were made on account) b. Materials requisitions issued by production comapny during the month total $56200. c. Time cards of direct workers show 2000 hours worked on various jobs during the month for a total direct labor cost of $30000 d. Direct workers were paid $26300 in March e. Actuial overhead costs for themonth amount to 34900 (for simplicity you may credit accounts payable) f. Overhead is applied to jobs ata a rate of $18 per direct labor hour g. jobs with total accumulated costs of $116000 were completed during the month h. During March, units costing $128000 were sold for $210000 (All sales were made on account) Prepare general jouranl entries to summarize each of thes transactions in the company's general ledger accounts (if no entry is required for a transaction, select no jouranlenry reqired) 1. Record the purchases of direct materials during March 2. Record the materials placed into production during March 3. Record the direct labor costs applicable to production 4. Record the direct labor payrolls paid in March 5. Record the actual overhead costs in March 6. Record the overhead applied to production duringMarch 7. Record the cost of completed jobs in MArch 8. Record the entry to summarize credit sales in March 9. Record the cost of units sold in March
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.
The following information relates tot he manufacturing operations of O'Shaughnessy Mfg Co during the month of March. The company uses
a. Purchases of direct materials during the month amount ot $59,700 (all purchases were made on account)
b. Materials requisitions issued by production comapny during the month total $56200.
c. Time cards of direct workers show 2000 hours worked on various jobs during the month for a total direct labor cost of $30000
d. Direct workers were paid $26300 in March
e. Actuial overhead costs for themonth amount to 34900 (for simplicity you may credit accounts payable)
f. Overhead is applied to jobs ata a rate of $18 per direct labor hour
g. jobs with total accumulated costs of $116000 were completed during the month
h. During March, units costing $128000 were sold for $210000 (All sales were made on account)
Prepare general jouranl entries to summarize each of thes transactions in the company's general ledger accounts (if no entry is required for a transaction, select no jouranlenry reqired)
1. Record the purchases of direct materials during March
2. Record the materials placed into production during March
3. Record the direct labor costs applicable to production
4. Record the direct labor payrolls paid in March
5. Record the actual overhead costs in March
6. Record the overhead applied to production duringMarch
7. Record the cost of completed jobs in MArch
8. Record the entry to summarize credit sales in March
9. Record the cost of units sold in March
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