week 2 SUFE Process Costing week 2 Feb 2012

E l p m a s inputs to outputs flow inputs direct

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Unformatted text preview: or + Direct Overheads are combined and move to WIP for each Job number (individual job) (individual • Each job eventually will Each be sold to the customer (output) at that moment the invoice is made and WIP has changed before that to “finished goods” that Journal entries under job costing: Journal • Acquisition of raw materials from suppliers: – Raw materials control (d) – Accounts payables ( c ) • Material requisition : – WIP (direct material) (d) – Factory Overhead (indirect material) (d) – Raw Material Control ( c ) • Distribution of Labor costs (time sheets) – – – WIP (direct labor) (d) Factory Overhead (indirect labor) (d) Labor Control ( c ) Journal entries under job costing(2) Journal • Factory Payroll: – – – – • Labor Control (direct +indirect labor) (d) Accrued Payroll ( c ) Group Tax Payable ( c ) Other deductions ( c ) Incurrence Factory Overhead: – Factory Overhead Control (d) – Cash/Accounts payable/Provisions/Accruals ( c ) • • Transfer of actual indirect costs to applied account: – Factory Overhead applied (d) – Factory Overhead Control ( c ) Recovery rate Factory Overhead applied: – WIP (d) – Factory Overhead applied ( c ) Journal entries under job costing(3) Journal • Completed Production (production report): – Finished Goods (d) – WIP ( c ) • Sales: (invoices) – – – – COGS (d) Finished Goods ( c ) and: Accounts Receivables (d) Sales revenues ( c ) Under/Over applied overhead: Under/Over • Under applied Overhead: – COGS (d) – Factory Overhead Applied ( c ) • Over applied Overhead: – Factory Overhead Applied (d) – COGS ( c )...
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This note was uploaded on 12/02/2012 for the course ACCOUNTING 101 taught by Professor Wang during the Spring '12 term at Shanghai University.

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