Woodpecker Furniture manufactures wood patio furniture. If the company reports the following costs for June 2024, what is the balance in the Manufacturing Overhead account before overhead is allocated to jobs? Assume that the labor has been incurred, but not yet paid. Prepare journal entries for overhead costs incurred in June. Wood $220,000 Nails, glue, stain 20,000 Depreciation on saws 5,100 Indirect manufacturing labor 36,000 Depreciation on delivery truck 2,700 Assembly-line workers' wages 59,000 What is the balance in the Manufacturing Overhead account before overhead is allocated to jobs? Enter the costs and calculate the balance ("Bal.") of the Manufacturing Overhead T-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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Wood
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$220,000
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|---|---|
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Nails, glue, stain
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20,000
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5,100
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Indirect manufacturing labor
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36,000
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Depreciation on delivery truck
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2,700
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Assembly-line workers' wages
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59,000
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