Chapter 19, Problem 1APSA

To determine

Job Order Costing:

Job order costing is a system of allocating cost of production to an individual product or group of products. Under job order costing, each individual product or batches of products are treated as separate unit due to its unique features customize by the customers.

Product Cost:

The cost incurred on the production of a particular job or product is called product cost. The cost in production of a product usually involves raw material used, direct labor used and manufacturing overhead applied.

To determine:

1. Compute the total of each production cost incurred for April and the total cost assigned to each job.

2. Prepare journal entries for the month of April recording the production events and transactions.

3. Preparing a schedule of cost of goods manufactured.

4. Computation of gross profit and show how to present the inventories on the April 30 balance sheet.