Final Cheat shee.pdf - Wildwing Entertainment Inc. is a...

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Wildwing Entertainment Inc. is a manufacturer that uses ajob order cost system. The following data summarize theoperations related to production for March, the first monthof operations:1.Materials purchased on account, $15,500.2.Materials requisitioned and labor used:Factory overhead costs incurred on account,$2,700.The following costs were charged to Work inProcess—Mixing during May:During May, 16,000 units of concrete werecompleted, and 15,800 units were sold.Inventories on May 31 were as follows:Prepare a cost of production report for theMixing Department.Determine the cost of goods sold (indicatenumber of units and unit costs).Determine the finished goods inventory,May 31, 2016.Cost accounting systemsSystems that measure, record, and report product costsJob order cost systemA type of cost accounting system that provides for aseparate record of the cost of each particular quantity ofproduct that passes through the factoryJobEach quantity of product that is manufacturedDepreciation ofmachinery, $1,750.Factory overhead is applied at a rate of 70% ofdirect labor cost.Jobs completed: Nos. 100, 101, 102, 104.Jobs 100, 101, and 102 were shipped, andcustomers were billed for $8,100, $3,800,and $3,500, respectively.Work in Process: $11,742 ($11,390 + $7,000+ $4,900 – $11,548)Finished Goods: $1,850 ($11,548 – $9,698)2,000 units at $8.30 $16,600Job shopManufacturers that use a job order cost systemProcess cost systemA type of cost system that accumulates costs for each ofthe various departments within a manufacturing facilityMaterials ledgerThe subsidiary ledger containing the individual accounts foreach type of materialReceiving reportThe form orelectronictransmissionused by thereceivingpersonnel toindicate thatmaterials havebeen receivedand inspectedMaterialrequisitionThe form orelectronictransmissionused by amanufacturingdepartment toauthorizematerialsissuances fromthe storeroomJob costs sheetsAn account in thework in processsubsidiary ledgerin which the costscharged to aparticular joborder arerecordedTime ticketsThe form onwhich the amountof time spent byeach employeeand the labor costincurred for eachindividual job, orfor factoryoverhead, arerecordedIndirect materialsComes from a summary of materials requisitionsIndirect laborComes from the salaries of production supervisors and thewages of other employees such as janitorsFactory powerComes from utility billsFactory depreciation
Comes from Accounting Department computations ofdepreciationCost allocationThe process of assigning indirect cost to a cost object,such as a jobActivity baseA measure of activity that is related to changes in cost.
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Term
Spring
Professor
N/A
Tags
Cost Accounting, Supply chain management terms, Process Inventory

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