John Manufacturing Company manufactures one product that has several model styles. All materials are added at the beginning of production. Manufacturing overhead is applied as a percentage of direct labor cost. On January 1, 20X1, one job, DE31, was in process, with the following accumulated costs: Materials Direct labor Manufacturing overhead Total $10,000 5,000 1,000 $16,000 The beginning finished goods inventory for John Manufacturing Company on January 1, 20X1, was $30,000. The following additional data is given for the month of January: Total labor costs incurred Total cost of completed Job DE31 Total materials costs incurred $40,000 21,000 23,000 In addition, Job JA01 was begun and completed during the month. Its costs included materials of $10,000 and labor of $4,000. Job JA02 was begun during the month and was in process at the end of the month. During the month, sales were $100,000, and the gross profit rate was 40 percent. Required: 1. For Jobs DE31, JA01, and JA02, calculate the cost of materials, labor, and overhead for the month of January to find the total cost of each job. 2. Prepare a schedule of cost of goods sold for the month of January.

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 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 …

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…