1. Identifying appropriate cost accounting systems Aa Aa A cost accounting syste

Question

1. Identifying appropriate cost accounting systems Aa Aa A cost accounting system captures the cost to manufacture a product. Companies select cost accounting systems based on the type and nature of their product or service and the desired level of cost accounting detail Select the cost accounting system that would most likely be used by the following companies. Job Order Cost System Process Cost System A brick manufacturer A computer manufacturer that produces three different computer models A custom home builder A personal tailor

Explanation / Answer

1)

a) A brick manufacturer - Process cost system.

b) A computer manufacturer that produces three different computer models - Process cost system.

c) A custom home builder - Job order cost system

d) A personal tailor - Job order cost system

2) Journal entries:

Nov 4:

Raw material inventory......................2,660

               Accounts payable...................................2660

Nov 6:

Work in Process...............................1120

              Raw material inventory.............................1120

4) The table alloacting labor cost to Jobs is completed as given below:

Factory labor cost for Ingold order: $400

Factory labor cost for Shumate order: $408

Journal entry:

Work in process ...................1056

         Wages payable............................1056

Hourly Ingold Job Shumate Job Larkin Job Total Employee rate Hours Dollars Hours Dollars Hours Dollars Hours Dollars Sarmone 16 8 128 17 272 7 112 32 512 Kint 17 16 272 8 136 8 136 32 544 Totals 24 400 25 408 15 248 64 1056

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.