Assigning Costs to Cost of Goods Sold

Assigning Costs to Cost of Goods Sold - Across the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ASSIGNING COSTS TO COST OF GOODS SOLD Companies recognize cost of goods sold when each sale occurs. To illustrate the entries a company  makes when it sells a completed job, assume that on January 31 Wallace Manufacturing sells on  account Job 101. The job cost $39,000, and it sold for $50,000. The entries to record the sale and  recognize cost of goods sold are:  (8) Accounts Receivable (To record sale of Job No. 101) Cost of Goods Sold Finished Goods Inventory (To record cost of Job No. 101) As Illustration  15-15  shows, Wallace records, in the issues section of the finished goods record, the  units sold, the cost per unit, and the total cost of goods sold for each job sold. 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Across the Organization Many of you will work for service companies. Service companies like the (health care), PriceWaterhouseCoopers (accounting firm), and Lynch also use job order costing systems. The major difference in a job order costing system between a manufacturing company such as States Fire Apparatus service company such as Massachusetts General Hospital Service companies do not have raw materials nor finished goods inventory. Because service industries use job order costing systems extensively, we provide exercises in the end-of-chapter material to help you understand how to cost various types of services....
View Full Document

{[ snackBarMessage ]}

Page1 / 3

Assigning Costs to Cost of Goods Sold - Across the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online