Job Order Costing - Transaction Summary

COST ACCUMULATION: SUMMARY OF ESSENTIAL TRANSACTION JOURNAL ENTRIES:

TRANSACTIONS JOURNAL ENTRIES

1. Purchase of Direct Raw Materials

- Initial Journal Entry Raw Materials - Direct xxx Cash / Accounts Payable xxx - To record purchase of Direct Raw Materials.

2. Purchase of Indirect Raw Materials

- Initial Journal Entry Raw Materials - Indirect xxx Cash / Accounts Payable xxx - To record purchase of Indirect Raw Materials.

3. Issuance of Direct Raw Materials

- Initial Journal Entry Raw Materials Used xxx Raw Materials - Direct xxx - To record issuance of Direct Raw Materials to Production.

- Closing Journal Entry to WIP Work in Process xxx Raw Materials Used xxx - To close issued Direct Raw Materials to Work in Process.

Summary Entry:

- Compound Journal Entry Work in Process xxx Raw Materials - Direct xxx - To record issuance of Direct Raw Materials to Production.

TRANSACTIONS JOURNAL ENTRIES

4. Recording of Indirect Materials Issuances

- Initial Journal Entry Indirect Materials Used xxx Raw Materials – Indirect xxx - To record issuance of Indirect Materials to Production.

- Closing Journal Entry to FOH Factory Overhead - Control xxx Indirect Materials Used xxx - To close issued Indirect