Self StudySelf Test

In recording the issuance of raw materials in a job order cost system, it would be incorrect to a debit Work in Process Inventory. b debit Finished Goods Inventory. c debit Manufacturing Overhead. d credit Raw Materials Inventory. 6. The entry when direct factory labor is assigned to jobs is a debit to a Work in Process Inventory and a credit to Factory Labor. b Manufacturing Overhead and a credit to Factory Labor. c Factory Labor and a credit to Manufacturing Overhead. d Factory Labor and a...

May 1 Inventories-finished Goods 12 600 Work In Process 14 700 And Raw Materials

Prepare entries to record the operations summarized above. Prepare a schedule showing the individual cost elements and total cost for each job in item 6. Prepare a cost of goods manufactured schedule and partial financial statements. SO 2, 5 E2-9 At May 31, 2005, the accounts of Yellow Knife Manufacturing Company show the 1. May 1 inventories finished goods 12,600, work in process 14,700, and raw materials 8,200. 2. May 31 inventories finished goods 11,500, work in process 17,900, and raw...

Job Ord er Cost Fl ow

The flow of costs direct materials, direct labor, and manufacturing overhead in job order cost accounting parallels the physical flow of the materials as they are converted into finished goods. As shown in Illustration 2-3 page 54 , manufacturing costs are assigned to the Work in Process Inventory account. When a job is completed, the cost of the job is transferred to Finished Goods Inventory. Later when the goods are sold, their cost is transferred to Cost of Goods Sold. Illustration 2-3...

What Was The Balance In Work In Process Inventory On January 1 If This Was The Only Unfinished

a I llll l gt On the basis of the foregoing data answer the following questions. 1 What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job 2 If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year b Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92. Analyze costs of manufacturing and determine missing amounts. SO 2, 5 E2-4 Manufacturing cost...

Business Insigfht QBusiness Perspective

Karen Lundegaard

General Motors recently launched a new Internet-based ordering system intended to deliver custom vehicles in 15 to 20 days instead of the 55 to 60 days it previously took. Customers interested in a GM car can search online to see if any dealers have a car with the options they want. If not, the customer uses an online program to configure a car with the desired options and then places the order. While this online approach could potentially provide savings for automakers by reducing inventory...

Job Cost Sheet Of Battle Company Is Given Below

a Compute the manufacturing overhead rate for the year. b What is the amount of under- or overapplied overhead at December 31 c Assuming the under- or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold. E2-6 A job cost sheet of Battle Company is given below. Analyze job cost sheet and prepare entry for completed job. Prepare entries for manufacturing costs. SO 2, 4, 5

Questions

1. a Kent Krause is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Kent. b What is an important feature of a cost accounting system 2. a Distinguish between the two types of cost accounting systems. b May a company use both types of cost accounting systems 3. What type of industry is likely to use a job order cost system Give some examples. 4. What type of industry is likely to use a process cost system Give some examples. 5. Your...

Cost Accounting Systems

Cost accounting involves the measuring, recording, and reporting of product costs. From the data accumulated, both the total cost and the unit cost of each product are determined. The accuracy of the product cost information produced by the cost accounting system is critical to the success of the company. As you will see in later chapters, this information is used to determine which products to produce, what price to charge, and the amounts to produce. Accurate product cost information is also...

Und er or Overapplied Manufacturing Overhead

When Manufacturing Overhead has a debit balance, overhead is said to be un-derapplied. Underapplied overhead means that the overhead assigned to work in process is less than the overhead incurred. Conversely, when manufacturing overhead has a credit balance, overhead is overapplied. Overapplied overhead means that the overhead assigned to work in process is greater than the overhead incurred. These concepts are shown in Illustration 2-22. Distinguish between under-and overapplied manufacturing...