purposes of cost accounting. Describe the flow of costs in a job order cost accounting system. Explain the nature and importance of a job cost sheet. Indicate how the predetermined overhead rate is determined and used. Prepare entries for jobs completed and sold. Distinguish between under- and overapplied manufacturing overhead. Questions 1‚ 2‚ 3‚ 4 Exercises 2. 5‚ 6‚ 7‚ 8‚11‚ 12 1‚ 2‚ 3‚ 4 1‚ 2‚ 3‚ 4‚ 6‚ 7‚ 8‚ 9‚11 1A‚ 2A‚ 3A‚ 5A 1B‚ 2B‚ 3B‚ 5B 3. 9‚ 10‚ 11‚ 12 5 1
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for use $108‚000 Less Raw Materials Ending $(23‚000) Raw Materials Used in Production $85‚000 Direct Labor Cost $90‚000 Manufacturing overhead Manufacturing overhead cost incurred $44‚000 Indirect materials included in manufacture overhead costs incurred $8‚000 Manufacturing overhead cost applied to work in process $39‚000 Total Manufacturing Overhead $91‚000 Total Manufacturing Cost $266‚000 Add Work in Process Inventory‚ Beginning $9‚000 Less Work Process Inventory end $(13‚000) Cost of Goods Manufactured
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Asignación 1 acct. 1162 Pág.870 E19-3 a. Identify each of the costs as direct materials (DM)‚ direct labor (DL)‚ manufacturing overhead (MO)‚ or period costs (PER). Direct materials Materials used in product. Direct labor Labor cost of assembly-line workers Manufacturing overhead Depreciation on plant‚ property taxes on plant‚ delivery expense‚ factory supplies used. Period cost Advertising expense PER Property taxes on store. b. Explain the difference in
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materials. A summary of the T-accounts for Needham Company before adjusting for under- or overallocation of overhead follows: Direct Materials Control Work-in-Process Control 1-1-2008 30‚000 Purchases 400‚000 Material used for manufacturing 380‚000 1-1-2008 20‚000 Direct materials 380‚000 Transferred to finished goods 940‚000 12-31-2008 50‚000 Direct manuf. Labor 360‚000 Manuf. overhead allocated 480‚000 12-31-2008 300‚000 Finished Goods Control Cost of Goods Sold 1-1-2008 10‚000 Transferred
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Chapter 2--Job Order Costing Student: ___________________________________________________________________________ 1. Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department. True False 2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others. True False 3. A job order cost accounting system provides for a separate record of the cost of each particular quantity
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costs that were incurred during the current year. Evaluate whether the cost is: 1. A product cost or a period cost 2. Variable or fixed in terms of behavior 3. For the product cost‚ whether it is classified as direct material‚ direct labor‚ or manufacturing overhead No. 1 Descriptions Product Cost Period Variable Fixed DM Product Cost DL MOH Tire cost incurred by Ford Motor Company Sales Commissions paid to the sales force of 2 Dell Computer Wood glue consumed in the manufacture of 3 Thomasville funiture
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If you are starting out in a new business‚ especially a service/manufacturing business‚ understanding the cost accounting system and which cost accounting system will work best for your company‚ is the first step to being successful. Once you find someone to help you navigate those waters‚ let them help you sail the rough seas of direct and indirect inventory‚ direct and indirect labor costs‚ and how to allocate factory overhead as well. While it all may sound confusing‚ having the right person
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Assignment 1 – Manufacturing company Johnson & Johnson Johnson & Johnson is an American multinational company that was founded in Brunswick‚ New Jersey in 1886 by American entrepreneurs Robert Wood Johnson and Edward Mead Johnson. It manufactures pharmaceuticals‚ medical devices and consumer products. Johnson and Johnson and its subsidiaries have operations in over 60 countries and sell their products in over 175 countries. They are one of the world’s largest manufacturer of health care
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over applied overheads it is essential that the process for job-costing is understood. The basic flow of costs in a job-order system begins by recording the costs of material‚ labor‚ and manufacturing overhead. "The use of absorption costing to provide quotes for jobs takes account of both fixed and variable costs. (1) Material and direct labor costs are debited to the ’Work in Process’ inventory. Any indirect material or indirect labor costs are debited to the Manufacturing Overhead inventory‚ (which
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d. profit planning B is correct. Section “Management accounting basics” – Calculating earnings per share is a function for external users of financial information. 7. Management accounting is applicable to a. service entities b. manufacturing entities c. not-for-profit entities d. all of these D is correct. Section “Management accounting basics” – Management accounting applies to any business entity. 10. Financial statements for external users can be described as
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