Job Order Costing : Job order costing is a system of allocating cost of production to an individual product or group of products. Under job order costing, each individual product or batches of products are treated as separate unit due to its unique features customize by the customers. Product Cost: The cost incurred on the production of a particular job or product is called product cost. The cost in production of a product usually involves raw material used, direct labor used and manufacturing overhead applied. Cost Sheet: The document which reports all the cost incurred on a particular job is called cost sheet. It contains all necessary information regarding the cost on specific production or job. The cost which typically shown in a cost sheet are; direct material, direct labor and manufacturing overhead. To determine : 1. Preparing a job cost sheet for each job worked on during the month. 2. Prepare journal entries to record the events and transactions a through i. 3. Set up T-accounts and post the journal entries for each of the following general ledger accounts: Raw Materials Inventory; Work in Process Inventory; Finished Goods Inventory; Factory Overhead; Cost of Goods Sold. 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 3APSA

To determine

Job Order Costing:

Job order costing is a system of allocating cost of production to an individual product or group of products. Under job order costing, each individual product or batches of products are treated as separate unit due to its unique features customize by the customers.

Product Cost:

The cost incurred on the production of a particular job or product is called product cost. The cost in production of a product usually involves raw material used, direct labor used and manufacturing overhead applied.

Cost Sheet:

The document which reports all the cost incurred on a particular job is called cost sheet. It contains all necessary information regarding the cost on specific production or job. The cost which typically shown in a cost sheet are; direct material, direct labor and manufacturing overhead.

To determine:

1.

Preparing a job cost sheet for each job worked on during the month.

2.

Prepare journal entries to record the events and transactions a through i.

3.

Set up T-accounts and post the journal entries for each of the following general ledger accounts: Raw Materials Inventory; Work in Process Inventory; Finished Goods Inventory; Factory Overhead; Cost of Goods Sold.

4.

Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Work in Process account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Peterson Furniture Designs is preparing the annual financial statements dated December 31. Ending inventory information about the five major items stocked for regular sale follows: Unit Cost Quantit When Item y on Market Value at LCM Recorded Total per Total Acquired LCM Hand Year-End Item Cost (FIFO) Alligator 70 $ 46 $ 41 $ 3,220 Armoires Bear 85 80 80 6,800 Bureaus Cougar Credenz 10 90 9E 92 900 as Dingo 35 35 55 35 1,225 Cribs Elephant 400 15 12 6,000 Dressers Required: 1. Complete the two columns of the table. 2. Compute the amount that should be reported for the ending inventory using the LCM rule applied to each item.

Please solve this question financial accounting

10 marks Question