berta Capital company uses a job-order costing system. The following cata relate to January, th year a. Raw materials were purchased on account, $404,000 b. Raw materials were issued to production, $294,000 ($232.000 direct materials and $62,000 indirect materials) c. Direct labour cost was incurred. $124,000, indirect labour cost was incurred. $90,000 d. Depreciation was recorded on factory equipment $90,000 e. Other manufacturing overhead costs were incurred during January $180,000 (credit accounts payable) t. The company applies manufacturing overhead cost to production on the basis of $14 60 per machine-hour There were 32.000 machine-hours recorded for January 9. Production orders costing $786,000 according to their job cost sheets were completed during January and transferred to finished goods. h. Production orders that had cost $720,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold at 25% above cost The goods were sold on account Required: 1. Prepare journal entries to record the preceding information of no entry is required for a particular transaction, select "No journal entry required" in the first account field.) View transaction t Journal entry worksheet Record raw material purchased on account. Nets before credits Transaction General Journal 7 Debid Credi
berta Capital company uses a job-order costing system. The following cata relate to January, th year a. Raw materials were purchased on account, $404,000 b. Raw materials were issued to production, $294,000 ($232.000 direct materials and $62,000 indirect materials) c. Direct labour cost was incurred. $124,000, indirect labour cost was incurred. $90,000 d. Depreciation was recorded on factory equipment $90,000 e. Other manufacturing overhead costs were incurred during January $180,000 (credit accounts payable) t. The company applies manufacturing overhead cost to production on the basis of $14 60 per machine-hour There were 32.000 machine-hours recorded for January 9. Production orders costing $786,000 according to their job cost sheets were completed during January and transferred to finished goods. h. Production orders that had cost $720,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold at 25% above cost The goods were sold on account Required: 1. Prepare journal entries to record the preceding information of no entry is required for a particular transaction, select "No journal entry required" in the first account field.) View transaction t Journal entry worksheet Record raw material purchased on account. Nets before credits Transaction General Journal 7 Debid Credi
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
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.
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Transcribed Image Text:Alberta Capital Company uses a job-order costing system. The following data relate to January, the first month of the company's fiscal
year
a. Raw materials were purchased on account, $404,000
b. Raw materials were issued to production, $294,000 ($232.000 direct materials and $62,000 indirect materials)
c. Direct labour cost was incurred $124,000, indirect labour cost was incurred. $90.000
d. Depreciation was recorded on factory equipment. $90,000
e. Other manufacturing overheed costs were incurred during January $180,000 (credit accounts payable)
t. The company applies manufacturing overhead cost to production on the basis of $14 60 per machine-hour There were 32.000
machine-hours recorded for January
9 Production orders costing $786,000 according to their job cost sheets were completed during January and transferred to finished
goods.
h. Production orders that had cost $720,000 10 complete according to their job cost sheets were shipped to customers during the
month. These goods were sold at 25% above cost The goods were sold on account
Required:
1. Prepare journal entries to record the preceding information of no entry is required for a particular transaction, select "No journal
entry required in the first account field.)
Journal entry worksheet
<
2
3
5
Record raw material purchased on account
Notts before credits
Transaction
General Journal
0
36
Debid
Credit
>
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