rane Corporation incurred the following transactions. 1. Purchased raw materials on account $58,430. 2. Raw Materials of $45,360 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,660 was classified as indirect materials. 3. Factory labor costs incurred were $75,520. 4. Time tickets indicated that $68,040
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.
Crane Corporation incurred the following transactions.
| 1. | Purchased raw materials on account $58,430. | |
| 2. | Raw Materials of $45,360 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,660 was classified as indirect materials. | |
| 3. | ||
| 4. | Time tickets indicated that $68,040 was direct labor and $7,480 was indirect labor. | |
| 5. | Manufacturing |
|
| 6. | Depreciation on the company’s office building was $10,160. | |
| 7. | Manufacturing overhead was applied at the rate of 150% of direct labor cost. | |
| 8. | Goods costing $110,880 were completed and transferred to finished goods. | |
| 9. | Finished goods costing $94,500 to manufacture were sold on account for $129,780. |
Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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No.
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Account Titles and Explanation
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Debit
|
Credit
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|---|---|---|---|
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(1)
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enter an account title
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enter a debit amount
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enter a credit amount
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|
enter an account title
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enter a debit amount
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enter a credit amount
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|
|
(2)
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enter an account title
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enter a debit amount
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enter a credit amount
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|
enter an account title
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enter a debit amount
|
enter a credit amount
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|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
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(3)
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enter an account title
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enter a debit amount
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enter a credit amount
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|
enter an account title
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enter a debit amount
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enter a credit amount
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|
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(4)
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enter an account title
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enter a debit amount
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enter a credit amount
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|
enter an account title
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enter a debit amount
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enter a credit amount
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|
|
enter an account title
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enter a debit amount
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enter a credit amount
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(5)
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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|
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(6)
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enter an account title
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enter a debit amount
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enter a credit amount
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|
enter an account title
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enter a debit amount
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enter a credit amount
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|
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(7)
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enter an account title
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enter a debit amount
|
enter a credit amount
|
|
enter an account title
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enter a debit amount
|
enter a credit amount
|
|
|
(8)
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enter an account title
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enter a debit amount
|
enter a credit amount
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
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|
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(9)
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enter an account title to record the sale
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enter a debit amount
|
enter a credit amount
|
|
enter an account title to record the sale
|
enter a debit amount
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enter a credit amount
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|
| (To record the sale) | |||
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enter an account title to record the cost of the sale
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record the cost of the sale
|
enter a debit amount
|
enter a credit amount
|
|
| (To record the cost of the sale) |
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