Uhtred Manufacturing had the following transactions in October: 1. Purchased raw materials on account, $57,100. 2. Used materials in production: $18,500 in the Mixing Department; $5,100 in the packaging Department; $800 in indirect materials. 3. Incurred labor costs: $9,000 in the Mixing Department; $3,960 in the Packaging Department; $2,140 in indirect labor. 4. Incurred manufacturing overhead costs: $8,850 in machinery depreciation; paid $3,750 for rent and paid for utilities at a cost of $1,690. Prepare the journal entries for Uhtred Manufacturing.
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.
Double-entry bookkeeping is a method of recording transactions where for every business transaction, an entry is recorded in at least two accounts as a debit or credit. In a double-entry system, the amounts recorded as debits must be equal to the amounts recorded as credits.
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