Job order costing : The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method. Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts. Accounting rules for journal entries: To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains. To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains. To determine: The agreement of work in process inventory with job cost sheets and calculation of (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead and (5) completed jobs.

Question

Want to see the full answer?

Answer 1

Question

Chapter 20, Problem 20.2AP

(a)

To determine

Job order costing: The job order costing is a method of cost accounting. Under this method, costs are given to each job and for each lot of goods. Each batch or each job has a different feature. The cost for each job is computed by using this method.

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

To increase the balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue, and gains.

To decrease the balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue, and gains.

To determine: The agreement of work in process inventory with job cost sheets and calculation of (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead and (5) completed jobs.

(b)

To determine

To prepare: The adjusting entry for manufacturing overhead.

(c)

To determine

The gross profit.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Jesse Brimhall is single. In 2024, his itemized deductions were $12,000 before considering any real property taxes he paid during the year. Jesse's adjusted gross income was $70,000 (also before considering any property tax deductions). In 2024, he paid real property taxes of $3,000 on property 1 and $1,200 of real property taxes on property 2. He did not pay any other deductible taxes during the year. If property 1 is Jesse's business building (he owns the property) and property 2 is his primary residence, what is his taxable income after taking property taxes into account (ignore the deduction for qualified business income)?

Sarah (single) purchased a home on January 1, 2008, for $600,000. She eventually sold the home for $800,000. What amount of the $200,000 gain on the sale does Sarah recognize in each of the following alternative situations? (Assume accumulated depreciation on the home is $0 at the time of the sale.) Sarah used the property as a vacation home through December 31, 2021. She then used the home as her principal residence from January 1, 2022, until she sold it on January 1, 2025.

All of the following are reasons why IT is important to accountants except: a.IT questions often appear on professional certification examinations b.The costs of IT are skyrocketing c.Accountants often help clients make IT decisions d.Auditors must evaluate computerized systems