Explanation Job order costing : Job order costing is one of the methods of cost accounting under which cost is collected and gathered for each job, work order, or project separately. It is a system by which a factory maintains a separate record of each particular quantity of product that passes through the factory. Job order costing is used when the products produced are significantly different from each other. Prepare general journal entries to record purchase of materials on account. Date Accounts title and explanation Debit ($) Credit ($) Material 26,400 Accounts payable 26,400 ( To record the purchase of direct materials on account.) (Table 1) Materials are an asset and there is an increase value of an asset. Hence, debit the materials account by $26,400. Accounts payable is a liability and there is an increase in the value of liability. Hence, credit the accounts payable account by $26,400. Prepare general journal entries to record issuance of direct materials to Job No.6. Date Accounts title and explanation Debit ($) Credit ($) Work in process 21,000 Materials 21,000 ( To record the issuance of direct material to Job No. 6) (Table 2) Work in process is an asset and there is an increase in the value of an asset. Hence, debit the work in process account by 21,000. Materials are an asset and there is a decrease value of an asset. Hence, credit the materials account by $21,000. Prepare general journal entries to record issuance of indirect materials. Date Accounts title and explanation Debit ($) Credit ($) Factory overhead 3,700 Materials 3,700 ( To record the issuance of indirect materials) (Table 3) Factory overhead (Expense) is a component of stockholder’s equity and there is an increase value of expense. Hence, debit the factory overhead account by $3,700. Materials are an asset and there is a decrease value of an asset. Hence, credit the materials account by $3,700. Prepare general journal entries to record the direct labor incurred in Job No.6. Date Accounts title and explanation Debit ($) Credit ($) Work in process 12,900 Wages payable 12,900 ( To record the occurrence of direct labor) (Table 4) Work in process is an asset and there is an increase in the value of an asset...

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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 …

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 compari…

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Bundle: College Accounting, Chapters 1-27, Loose-Leaf Version, 22nd + CengageNOWv2, 2 terms Printed Access Card

Ch. 26 - Prob. 1TF Ch. 26 - Prob. 2TF Ch. 26 - Prob. 3TF Ch. 26 - Prob. 4TF Ch. 26 - Prob. 5TF Ch. 26 - Prob. 1MC Ch. 26 - Prob. 2MC Ch. 26 - When total anticipated factory overhead is 500,000...Ch. 26 - When direct labor hours for Job 101 are 30 and the...Ch. 26 - Prob. 5MC

Ch. 26 - Prob. 1CE Ch. 26 - Prob. 2CE Ch. 26 - Prob. 3CE Ch. 26 - Prob. 1RQ Ch. 26 - Prob. 2RQ Ch. 26 - Prob. 3RQ Ch. 26 - Prob. 4RQ Ch. 26 - Prob. 5RQ Ch. 26 - Prob. 6RQ Ch. 26 - Prob. 7RQ Ch. 26 - Prob. 8RQ Ch. 26 - Prob. 9RQ Ch. 26 - Prob. 10RQ Ch. 26 - Prob. 11RQ Ch. 26 - Prob. 12RQ Ch. 26 - Prob. 13RQ Ch. 26 - Prob. 14RQ Ch. 26 - Prob. 15RQ Ch. 26 - COST OF GOODS SOLD SECTION The following...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED The...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD...Ch. 26 - JOURNAL ENTRIES FOR FACTORY OVERHEAD Huang Company...Ch. 26 - PREDETERMINED FACTORY OVERHEAD RATE Millerlile...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, OVERHEAD, AND...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED AND COST OF...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD...Ch. 26 - JOB ORDER COSTING TRANSACTIONS Stonestreet...Ch. 26 - JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED...Ch. 26 - COST OF GOODS SOLD SECTION The following...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED The...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD...Ch. 26 - JOURNAL ENTRIES FOR FACTORY OVERHEAD Bandy Company...Ch. 26 - PREDETERMINED FACTORY OVERHEAD RATE Marston...Ch. 26 - JOURNAL ENTRIES FOR MATERIAL, LABOR, OVERHEAD, AND...Ch. 26 - SCHEDULE OF COST OF GOODS MANUFACTURED AND COST OF...Ch. 26 - Prob. 8SPB Ch. 26 - Prob. 9SPB Ch. 26 - Prob. 10SPB Ch. 26 - Prob. 1MYW Ch. 26 - Forester Manufacturing Company uses a job order...Ch. 26 - Prob. 1CP

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Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY

Prepare general journal entries to record the given transaction.

Solution Summary: The author explains job order costing as a method of cost accounting under which cost is collected and gathered for each job, work order, or project separately.

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Chapter 26 Solutions