Totals 339,000 339,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materials requisition 11: Materials requisition 12: Labor time ticket 52: Labor time ticket 53: Labor time ticket 54: $4,200 direct materials to Job 402 $ 7,600 direct materials to Job 404 $ 2,100 indirect materials $7,000 direct labor to Job 402 $ 13,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $101,900 at the end of
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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Bergo Bay's accounting system generated the following account balances on December 31. The company's manager
knows something is wrong with this list of balances because it does not show any balance for Work in Process Inventory,
and the accrued factory payroll (Factory Wages Payable) has not been recorded.
Cash
Accounts receivable
Raw materials inventory
Work in process inventory
Finished goods inventory
Prepaid rent
Accounts payable
Notes payable
Common stock
Retained earnings (prior year)
Sales
Cost of goods sold
Factory overhead
General and administrative expenses
Totals
Debit
$ 67,000
36,000
23,000
0
12,000
4,000
116,000
27,000
54,000
$ 339,000
Credit
$ 10,000
13,000
40,000
86,000
190,000
$ 339,000
These six documents must be processed to
Materials requisition 10:
Materials requisition 11:
Materials requisition 12:
Labor time ticket 52:
Labor time ticket 53:
Labor time ticket 54:
$ 13,000 direct labor to Job 404
$ 5,000 indirect labor
Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 150% of direct labor cost.
the accounting records up to date.
$ 4,200 direct materials to Job 402
$ 7,600 direct materials to Job 404
$ 2,100 indirect materials
$ 7,000 direct labor to Job 402
4. Prepare an income statement for the year and a balance sheet as of December 31. Hint: Retained earnings is $101,900 at the end of
the current year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9905c93a-70f1-4b79-854b-5a7c1d325d92%2F5397625f-2244-4784-bf72-5d258637d432%2Fvreu14_processed.png&w=3840&q=75)
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