Wildwing entertainment Inc. is a manufacturer that uses a job cost system. THE FOLLOWING data summarize the operations related to production for march , the first month of operations: A. Materials purchased on account, $15,500 B. Materials requisitioned and labor used. Job no. Materials factory labor 100 $2.650 $1,770 101 1,240 650 102 980 420 103 3,420 1,900 104 1,000 500 105 2,100 1,760 For general factory use 450 650 C. Factory overhead costs incurred on account, $2,700 D. Depreciation of machinery, $1,750 E. Factory overhead is applied at a rate 70% of direct lbor cost. F. Jobs completed: Nos. 100, 101, 102, 104 G. Jobs 100, 101, and 102 were shipped, and customers were billed for $8,100, $3,800 and $3,500, respectively. Instructions: 1. Journalize the entries to record the transactions. 2. Determine the account balances for work in process and finished goods. 3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. 4. Prepare a schedule of jobs on hand to support the balance in the finished goods account.
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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