Week 2, LO 6 Demo

Week 2, LO 6 Demo - Week 2: Systems Design: Job-Order...

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Week 2: Systems Design: Job-Order Costing Week 2 Skill Building Demonstration Problem 6 Prepare a schedule of costs of goods manufactured and cost of goods sold. Learning Objective 6 Cost of Goods Manufactured When a job is completed the finished output is transferred from the production departments to the finished product warehouse. The entry in the accounting records to reflect this transfer is made by debiting the Finished Goods Account and crediting Work in Process Account. The amount of the transfer is equal to the sum of direct materials and direct labor, and manufacturing overhead that has been charged to the job. The total of all jobs that is transferred to finished goods represents the cost of goods manufactured for the period. COGM = DM + DL + Man OH Cost of Goods Sold When finished goods are shipped to a customer, the cost of the goods must be transferred from the Finished Goods account (asset) to the Cost of Goods Sold account (expense). The Cost of Goods Sold (expense) is recorded as each order is shipped to a
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This note was uploaded on 04/21/2011 for the course ACTG 211 taught by Professor Staff during the Spring '08 term at Ill. Chicago.

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Week 2, LO 6 Demo - Week 2: Systems Design: Job-Order...

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