To determine To prepare: Record the journal entries. Explanation CC has reported both direct labor and indirect labor related transactions. Direct labor cost is the cost of those labor which are directly involved in the production process. Glassblower’s wages are the direct labor cost for CC. Direct labor cost is traced directly to the jobs. However, CC has also incurred few indirect labor costs such as plant janitor wages and plant supervisor’s wages. These costs are not related to any individual jobs; therefore, these costs will be allocated to the jobs. Recording direct labor costs Glassblower’s wages are a direct labor cost and therefore it will be recorded in a work in process inventory account. With this transaction work in process inventory account and wages payable account will be impacted. Wages payables is a liability account and its balance are increasing therefore, it will be credited. Work in process inventory account is an asset account and its balance are increasing with the direct labor hours, therefore, it will be debited. Date Accounting title and explanation Post Ref Debit ($) Credit ($) Work in process inventory account $70,000 Wages payables $70,000 (to record the use of direct labor on jobs) Recording indirect labor costs Indirect labor cost is not related to a particular job...

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ISBN: 9780133428377

Author: Karen W. Braun, Wendy M. Tietz

Publisher: PEARSON

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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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Chapter 3, Problem 3.12SE

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Chapter 3 Solutions

Managerial Accounting (4th Edition)

Ch. 3 - Prob. 1QC Ch. 3 - 2. (Learning Objective 2) Which of the following...Ch. 3 - 3. (Learning Objective 2) Which of the following...Ch. 3 - 4. (Learning Objective 3) The amount of...Ch. 3 - 5. (Learning Objective 4) Which of the following...Ch. 3 - (Learning Objective 5) Which of the following is...Ch. 3 - 7. (Learning Objective 5) Assuming the amount of...Ch. 3 - 8. (Learning Objective 6) Whenever direct...Ch. 3 - 9. (Learning Objective 6) When a job is completed,...Ch. 3 - 10. (Learning Objective 7, Appendix) Which of the...

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