3. Prepare a schedule of jobs sold in April.
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 is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
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 comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Schedules for Unfinished and Completed Jobs
Waddell Equipment Company uses a
- Materials purchased on account, $140,400.
- Materials requisitioned and factory labor used:
Job Materials Factory Labor No. 401 $14,100 $13,200 No. 402 17,250 17,820 No. 403 11,400 8,940 No. 404 38,700 32,760 No. 405 24,600 24,900 No. 406 17,880 15,900 For general factory use 5,160 19,500 Factory overhead costs incurred on account, $18,000.- Depreciation of machinery and equipment, $6,240.
- The factory overhead rate is $55 per machine hour. Machine hours used:
Job Machine Hours No. 401 38 No. 402 30 No. 403 18 No. 404 56 No. 405 24 No. 406 14 Total 180 - Jobs completed: 401, 402, 403, and 405.
- Jobs were shipped and customers were billed as follows: Job 401, $39,000; Job 402, $54,000; Job 403, $72,000.
Instructions:
1. Prepare a schedule summarizing manufacturing costs by job for April.
| Job | Direct Materials | Direct Labor | Factory Overhead | Total |
| No. 401 | $fill in the blank 4f3b1ffe401f072_1 | $fill in the blank 4f3b1ffe401f072_2 | $fill in the blank 4f3b1ffe401f072_3 | $fill in the blank 4f3b1ffe401f072_4 |
| No. 402 | fill in the blank 4f3b1ffe401f072_5 | fill in the blank 4f3b1ffe401f072_6 | fill in the blank 4f3b1ffe401f072_7 | fill in the blank 4f3b1ffe401f072_8 |
| No. 403 | fill in the blank 4f3b1ffe401f072_9 | fill in the blank 4f3b1ffe401f072_10 | fill in the blank 4f3b1ffe401f072_11 | fill in the blank 4f3b1ffe401f072_12 |
| No. 404 | fill in the blank 4f3b1ffe401f072_13 | fill in the blank 4f3b1ffe401f072_14 | fill in the blank 4f3b1ffe401f072_15 | fill in the blank 4f3b1ffe401f072_16 |
| No. 405 | fill in the blank 4f3b1ffe401f072_17 | fill in the blank 4f3b1ffe401f072_18 | fill in the blank 4f3b1ffe401f072_19 | fill in the blank 4f3b1ffe401f072_20 |
| No. 406 | fill in the blank 4f3b1ffe401f072_21 | fill in the blank 4f3b1ffe401f072_22 | fill in the blank 4f3b1ffe401f072_23 | fill in the blank 4f3b1ffe401f072_24 |
| Total | $fill in the blank 4f3b1ffe401f072_25 |
Multiply the factory overhead rate by the number of machine hours for each job. Include the direct materials, direct factory labor, and factory overhead for each job.
2. Prepare a schedule of jobs finished in April.
| Job | Direct Materials | Direct Labor | Factory Overhead | Total |
| No. 401 | $fill in the blank 84f85a05304d00f_1 | $fill in the blank 84f85a05304d00f_2 | $fill in the blank 84f85a05304d00f_3 | $fill in the blank 84f85a05304d00f_4 |
| No. 402 | fill in the blank 84f85a05304d00f_5 | fill in the blank 84f85a05304d00f_6 | fill in the blank 84f85a05304d00f_7 | fill in the blank 84f85a05304d00f_8 |
| No. 403 | fill in the blank 84f85a05304d00f_9 | fill in the blank 84f85a05304d00f_10 | fill in the blank 84f85a05304d00f_11 | fill in the blank 84f85a05304d00f_12 |
| No. 405 | fill in the blank 84f85a05304d00f_13 | fill in the blank 84f85a05304d00f_14 | fill in the blank 84f85a05304d00f_15 | fill in the blank 84f85a05304d00f_16 |
| Total | $fill in the blank 84f85a05304d00f_17 |
Include the direct materials, direct labor, and factory overhead for each finished job.
3. Prepare a schedule of jobs sold in April.
| Job | |
| No. 401 | $fill in the blank ba6eeffb8fad005_1 |
| No. 402 | fill in the blank ba6eeffb8fad005_2 |
| No. 403 | fill in the blank ba6eeffb8fad005_3 |
| Total | $fill in the blank ba6eeffb8fad005_4 |
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