Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Job 33 Job 34 Source documents revealed the following during March: Materials Requisitions Forms Job 33 Job 34 Job 35 Indirect View transaction list $ 3,300 2,800 3,900 600 $ 10,600 The company applies overhead to products at a rate of 70 percent of direct labor cost. < Balance on 3/1 $5,500 3,100 $ 8,600 Required: Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. 1 Journal entry worksheet 2 Transaction a Labor Time Tickets $ 4,900 4,900 3,800 2,500 $ 16,100 3 Note: Enter debits before credits. Record entry Record the issuance of raw materials to production. Status of Job at Month-End Completed and sold Completed, but not sold In process General Journal Clear entry Debit Credit View general journal >
Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Work in Process Job 33 Job 34 Source documents revealed the following during March: Materials Requisitions Forms Job 33 Job 34 Job 35 Indirect View transaction list $ 3,300 2,800 3,900 600 $ 10,600 The company applies overhead to products at a rate of 70 percent of direct labor cost. < Balance on 3/1 $5,500 3,100 $ 8,600 Required: Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. 1 Journal entry worksheet 2 Transaction a Labor Time Tickets $ 4,900 4,900 3,800 2,500 $ 16,100 3 Note: Enter debits before credits. Record entry Record the issuance of raw materials to production. Status of Job at Month-End Completed and sold Completed, but not sold In process General Journal Clear entry Debit Credit View general journal >
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter1: Introduction To Cost Accounting
Section: Chapter Questions
Problem 10P: Sultan, Inc. manufactures goods to special order and uses a job order cost system. During its first...
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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:Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order.
On March 1, OCFF had two jobs in process with the following costs:
Work in Process
Job 33
Job 34
Source documents revealed the following during March:
Materials
Requisitions
Forms
$ 3,300
2,800
3,900
600
$ 10,600
Job 33
Job 34
Job 35
Indirect
View transaction list
The company applies overhead to products at a rate of 70 percent of direct labor cost.
Required:
Prepare journal entries to record the materials requisitions, labor costs, and applied overhead.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
<
Journal entry worksheet
Balance on
3/1
$ 5,500
3,100
$8,600
1
2
Transaction
a
Labor Time
Tickets
$ 4,900
4,900
3,800
2,500
$ 16,100
Note: Enter debits before credits.
3
Record the issuance of raw materials to production.
Record entry
Status of Job at Month-End
Completed and sold
Completed, but not sold
In process
General Journal
Clear entry
Debit
Credit
View general journal
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