With regards to the yachts it constructs, Swift Corporation utilizes a job order costing system. During September 1, 2010, the firm had the following account balances:
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.
![September 15 - Job #75 was completed, accepted by the customer, and billed at a selling
price of cost plus 30 percent. Selling prices are rounded to the nearest whole dollar.
September 20 - Paid the following monthly factory bills: utilities, $39,600; rent, $70,600;
and accounts payable (accrued in August), $196,800.
September 24 - Purchased raw material on account, $624,000.
September 25 - Issued $772,200 of raw material as follows: Job #78, $154,800; Job #82,
$212,600; Job #86, $349,000; and indirect material, $55,800.
September 30 - Recorded additional factory overhead costs as follows: depreciation,
$809,000; expired prepaid insurance, $165,400; and accrued taxes and licenses,
$232,400.
September 30 - Recorded and paid the factory payroll for September 16–30 of $714,400.
Analysis of the payroll follows:
Job #78
8,940 hours
$177,400
Job #82
13,650 hours
228,400
Job #86
9,980 hours
243,600
Indirect labor wages
65,000
September 30 - Applied overhead for the second half of the month to jobs.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb173d82-93fb-4b04-a8e3-807b5caff480%2F73d84193-585d-4f77-be86-420acece0551%2Fawo97h_processed.jpeg&w=3840&q=75)
![With regards to the yachts it constructs, Swift Corporation utilizes a job order
costing system. During September 1, 2010, the firm had the following account balances:
Raw Material Inventory
$ 332,400
Work in Process Inventory
1,512,600
Cost of Goods Sold
4,864,000
Also, on the 1st of September, three jobs found in the Work in Process Inventory
had the following balances:
Job #75
$586,400
Job #78
266,600
Job #82
659,600
Then, the given transactions happened on September:
September 1- Purchased $1,940,000 of raw material on account.
September 4 - Issued $1,900,000 of raw material as follows: Job #75, $289,600; Job
#78, $252,600; Job #82, $992,200; Job #86, $312,400; and indirect material, $53,200.
September 15 - Prepared and paid the $757,000 factory payroll for September 1-15.
Analysis of this payroll showed the following information:
Job #75
9,660 hours
$ 84,600
Job #78
26,320 hours
267,200
Job #82
20,300 hours
203,000
Job #86
10,280 hours
110,800
Indirect labor wages
91,400
September 15 - On each payroll date, Swift Corporation applies manufacturing overhead
to jobs at a rate of $12.50 per direct labor hour.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb173d82-93fb-4b04-a8e3-807b5caff480%2F73d84193-585d-4f77-be86-420acece0551%2Fnwf8oje_processed.jpeg&w=3840&q=75)
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