The following account appears in the ledger prior to recognizing the jobs completed in January: Work in Process Balance, January 1 $72,000 Direct materials 390,000 Direct labor 500,000 Factory overhead 250,000 Jobs finished during January are summarized as follows: Job 210 $200,000 Job 216 288,000 Job 224 225,000 Job 230 436,800 a. Journalize the entry to record the jobs completed. If an amount box does not require an entry, leave it blank. Finished Goods fill in the blank 9a53e7006f80f93_2 fill in the blank 9a53e7006f80f93_3 fill in the blank 9a53e7006f80f93_5 fill in the blank 9a53e7006f80f93_6 b. Determine the cost of the unfinished jobs at January 31.
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 account appears in the ledger prior to recognizing the jobs completed in January:
| Work in Process | ||
| Balance, January 1 | $72,000 | |
| Direct materials | 390,000 | |
| Direct labor | 500,000 | |
| Factory |
250,000 |
Jobs finished during January are summarized as follows:
| Job 210 | $200,000 |
| Job 216 | 288,000 |
| Job 224 | 225,000 |
| Job 230 | 436,800 |
a.
| Finished Goods | fill in the blank 9a53e7006f80f93_2 | fill in the blank 9a53e7006f80f93_3 | |
| fill in the blank 9a53e7006f80f93_5 | fill in the blank 9a53e7006f80f93_6 |
b. Determine the cost of the unfinished jobs at January 31.
$fill in the blank 0bc84e099fe0fc8_1
The journal entry to record the jobs completed is as follows:
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