Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending on the customer preference. On June 1, 2020, the general ledger for Case Inc. contains the follow data (pictured below). A) Journalize the June transactions for (1) the purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead production; (3) completion of jobs and sale of goods. B) Post the entires to Work in Process Inventory. C) Reconcile the balance in Work in Progress Inventory with the costs of unfinished jobs. D) Prepare a cost of goods manufactured schedule for June.
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.
Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending on the customer preference. On June 1, 2020, the general ledger for Case Inc. contains the follow data (pictured below).
A) Journalize the June transactions for (1) the purchase of raw materials,
B) Post the entires to Work in Process Inventory.
C) Reconcile the balance in Work in Progress Inventory with the costs of unfinished jobs.
D) Prepare a cost of goods manufactured schedule for June.
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