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Note re Completing job cost T_accounts-1

Note re Completing job cost T_accounts-1 - amount as an...

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Applied Mangerial Accounting - Supplementary Note Steps in Completing Job Costing T-accounts When We Must Keep Track of Individual Jobs 1. Enter the beginning balances (total job cost accumulated to date) on each Job T- account for any jobs in WIP. Cross-add the beginning balances of all the open jobs and enter this as the opening balance in the WIP T-account 2. Enter the DM, DL, and calculate the MO applied added to each job T-account this period. Cross-add the DM, then the DL, then the MO-applied for all the open jobs and place these totals as the DM, DL, and MO-A in the WIP T- account 3. Enter the job #’s and the related job costs for any jobs in FG (no separate job T- account is required since jobs are no longer in WIP). The total of these jobs will be the amount of the Beginning Bal. in FG . 4. For any jobs completed and transferred to FG, add the begin. bal. plus DM, DL, and MO-A added this period for that job on the Job T-account and show this
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Unformatted text preview: amount as an amount being transferred out of the job on the job T-account . Also enter this amount and the related job # on the credit side of the WIP a/c for each job completed and transferred out. Total this amount and show as a transfer out of the WIP T-account and into the FG T-account. 5. Do the same thing for any jobs sold. That is, show the job # and the cost of the job as a transfer out of the FG T-account. Subtotal the amount of all such jobs sold and transfer the total as a transfer into the COGS T-account. 6. Complete any other T-accounts: MO; Raw materials etc. 7. Calculate the ending balances for RM, WIP and FG. Make sure the ending balances in WIP and FG correspond to the accumulated job costs (from the job cost T-accounts) of the respective jobs still sitting in either WIP or FG. RF 01/07...
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