Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost system. Balances on April 1 from the materials ledger are as follows: Fabric $18,900 Polyester filling 5,700 Lumber 42,300 Glue 1,800 The materials purchased during April on account are summarized from the receiving reports as follows: Fabric $94,100 Polyester filling 130,800 Lumber 257,800 Glue 8,900 Materials were requisitioned to individual jobs as follows: Fabric Polyester Filling Lumber Glue Total Job 601 $35,800 $45,100 $120,600 $201,500 Job 602 27,600 49,000 105,600 182,200 Job 603 25,400 33,300 58,700 117,400 Factory overhead-indirect materials $4,700 4,700 Total $88,800 $127,400 $284,900 $4,700 $505,800 The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a. Journalize the entry to record the purchase of materials in April. If an amount box does not require an entry, leave it blank. a. Materials fill in the blank 8d9001fd4fa006c_2 fill in the blank 8d9001fd4fa006c_3 fill in the blank 8d9001fd4fa006c_5 fill in the blank 8d9001fd4fa006c_6 b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank. b. fill in the blank e21d5d00606cfef_2 fill in the blank e21d5d00606cfef_3 fill in the blank e21d5d00606cfef_5 fill in the blank e21d5d00606cfef_6 fill in the blank e21d5d00606cfef_8 fill in the blank e21d5d00606cfef_9 c. Determine the April 30 balances that would be shown in the materials ledger accounts. Fabric Polyester Filling Lumber Glue Balance, April 30 $fill in the blank 6c22a408301401d_1 $fill in the blank 6c22a408301401d_2 $fill in the blank 6c22a408301401d_3 $fill in the blank 6c22a408301401d_4
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.
Entries for Materials
Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a
| Fabric | $18,900 |
| Polyester filling | 5,700 |
| Lumber | 42,300 |
| Glue | 1,800 |
The materials purchased during April on account are summarized from the receiving reports as follows:
| Fabric | $94,100 |
| Polyester filling | 130,800 |
| Lumber | 257,800 |
| Glue | 8,900 |
Materials were requisitioned to individual jobs as follows:
| Fabric | Polyester Filling | Lumber | Glue | Total | ||||||
| Job 601 | $35,800 | $45,100 | $120,600 | $201,500 | ||||||
| Job 602 | 27,600 | 49,000 | 105,600 | 182,200 | ||||||
| Job 603 | 25,400 | 33,300 | 58,700 | 117,400 | ||||||
| Factory overhead-indirect materials | $4,700 | 4,700 | ||||||||
| Total | $88,800 | $127,400 | $284,900 | $4,700 | $505,800 |
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a.
| a. | Materials | fill in the blank 8d9001fd4fa006c_2 | fill in the blank 8d9001fd4fa006c_3 |
| fill in the blank 8d9001fd4fa006c_5 | fill in the blank 8d9001fd4fa006c_6 |
b. Journalize the entry to record the requisition of materials in April. If an amount box does not require an entry, leave it blank.
| b. | fill in the blank e21d5d00606cfef_2 | fill in the blank e21d5d00606cfef_3 | |
| fill in the blank e21d5d00606cfef_5 | fill in the blank e21d5d00606cfef_6 | ||
| fill in the blank e21d5d00606cfef_8 | fill in the blank e21d5d00606cfef_9 |
c. Determine the April 30 balances that would be shown in the materials ledger accounts.
| Fabric | Polyester Filling | Lumber | Glue | |
| Balance, April 30 | $fill in the blank 6c22a408301401d_1 | $fill in the blank 6c22a408301401d_2 | $fill in the blank 6c22a408301401d_3 | $fill in the blank 6c22a408301401d_4 |
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