Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following costs: Balance on 3/1 $ 5,700 4,200 $ 9,900 Source documents revealed the following during March: Materials Requisitions Forns $ 2,300 3,700 3,500 1,100 $ 10,600 The company applies overhead to products at a rate of 55 percent of direct labor cost. Work in Process Job 33 Job 34 Job 33 Job 34 Job 35 Indirect Labor Time Tickets $ 4,700 3,900 3,200 2,000 $ 13,800 Status of Job at Month-End Completed and sold Completed, but not sold In process Required: Prepare journal entries to record the materials requisitions, labor costs, and applied overhead. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Journal entry worksheet 1 2 3
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.
help
![Journal entry worksheet
<
1
Record Oak Creek Furniture Factory's payroll costs. Assume the direct labor is
owed but not paid.
Note: Enter debits before credits.
Transaction
b
Record entry
3
2
Journal entry worksheet
Transaction
C
General Journal
Note: Enter debits before credits.
Clear entry
Record the application of manufacturing overhead to production.
Debit
General Journal
Debit
Credit
View general journal
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F716b7632-0e76-4721-a5a8-635ce06d7b4b%2F58809180-8498-4994-a11f-4dfc255614d5%2F1zvwrs5_processed.png&w=3840&q=75)
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Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order.
On March 1, OCFF had two jobs in process with the following costs:
Balance on
3/1
$ 5,700
4,200
$ 9,900
Source documents revealed the following during March:
Work in Process
Job 33
Job 34
Materials
Requisitions
Forms
Labor Time
Tickets
$ 4,700
3,900
3,200
2,000
$ 13,800
The company applies overhead to products at a rate of 55 percent of direct labor cost.
Job 33
Job 34
Job 35
Indirect
$ 2,300
3,700
3,500
1,100
$10,600
Required:
Prepare journal entries to record the materials requisitions, labor costs, and applied overhead.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
Journal entry worksheet
1
2
Status of Job at Month-End
Completed and sold
Completed, but not sold
In process
3
Transaction
Record the issuance of raw materials to production.
Note: Enter debits before credits.
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F716b7632-0e76-4721-a5a8-635ce06d7b4b%2F58809180-8498-4994-a11f-4dfc255614d5%2Fgsf0rsw_processed.png&w=3840&q=75)
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