Entrepreneurial Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,600 of indirect materials and $15,100 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form: Job 301 Job 302 Direct materials $14,300 Direct materials $26,900 Direct labor 10,000 Direct labor 24,000 Factory overhead 6,500 Factory overhead 15,600 Total $30,800 Total $66,500 Job 303 Job 304 Direct materials $17,100 Direct materials $35,200 Direct labor 36,000 Direct labor 32,000 Factory overhead — Factory overhead — Determine the balance of the work in process account on January 31.
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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Entrepreneurial Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,600 of indirect materials and $15,100 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
| Job 301 | Job 302 | ||||
| Direct materials | $14,300 | Direct materials | $26,900 | ||
| Direct labor | 10,000 | Direct labor | 24,000 | ||
| Factory overhead | 6,500 | Factory overhead | 15,600 | ||
| Total | $30,800 | Total | $66,500 | ||
| Job 303 | Job 304 | ||||
| Direct materials | $17,100 | Direct materials | $35,200 | ||
| Direct labor | 36,000 | Direct labor | 32,000 | ||
| Factory overhead | — | Factory overhead | — |
Determine the balance of the work in process account on January 31.
The work in process includes the cost of jobs which are not yet completed at year end.
The goods that are completed are recorded as finished goods inventory.
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