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. Cost Sheet: The document which reports all the cost incurred on a particular job is called cost sheet. It contains all necessary information regarding the cost on specific production or job. The cost which typically shown in a cost sheet are; direct material, direct labor and manufacturing overhead. To determine : 1. Preparing a job cost sheet for each job worked on during the month. 2. Prepare journal entries to record the events and transactions a through i. 3. Set up T-accounts and post the journal entries for each of the following general ledger accounts: Raw Materials Inventory; Work in Process Inventory; Finished Goods Inventory; Factory Overhead; Cost of Goods Sold. 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 3APSA

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.

Cost Sheet:

The document which reports all the cost incurred on a particular job is called cost sheet. It contains all necessary information regarding the cost on specific production or job. The cost which typically shown in a cost sheet are; direct material, direct labor and manufacturing overhead.

To determine:

1.

Preparing a job cost sheet for each job worked on during the month.

2.

Prepare journal entries to record the events and transactions a through i.

3.

Set up T-accounts and post the journal entries for each of the following general ledger accounts: Raw Materials Inventory; Work in Process Inventory; Finished Goods Inventory; Factory Overhead; Cost of Goods Sold.

4.

Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Determine the cost per equivalent unit of conversion on these general accounting question

Carla Vista Corporation had a projected benefit obligation of $2,890,000 and plan assets of $3,097,000 at January 1, 2025. Carla Vista also had a net actuarial loss of $437,680 in accumulated OCI at January 1, 2025. The average remaining service period of Carla Vista's employees is 7.9 years. Compute Carla Vista's minimum amortization of the actuarial loss. Minimum amortization of the actuarial loss

Chapter 15 Homework i 10 0.83 points Saved Help Save & Exit Submit Check my work QS 15-8 (Algo) Computing predetermined overhead rates LO P3 A company estimates the following manufacturing costs at the beginning of the period: direct labor, $520,000; direct materials, $216,000; and factory overhead, $141,000. Required: eBook 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its predetermined overhead rate as a percent of direct materials. Ask Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 References Mc Graw Hill Compute its predetermined overhead rate as a percent of direct labor. Overhead Rate Numerator: 1 Denominator: = Overhead Rate = Overhead Rate = 0