Accounting for job order costing, Cost Accounting

Accounting for Job Order Costing

1.  Direct Labor 

Dr W.I.P. Control Account

Cr Cash Account

2.  Accrued Direct Wages

Dr W.I.P. Control Account

Cr Wages Control Account

Indirect Wages

 Dr Factory overheads control Account

Cr Wages Control Account

3. Production Overheads 

 (i) (Not still paid) 

Dr Factory overhead control Account

Cr Expenses or Creditor control   Account

  (ii) (While paid)

Dr Expense or creditors Account

Cr Cash Account

Note

 Overheads entries apply while there is an interlocking accounting system.

4.  Finished goods transferred to the store: 

Dr Finished goods stock control Account

 Cr W.I.P Control Account

5.  Sale delivery of finished goods to customers:

(i) On Credit:  Dr Debtors control Account Cr Sales Account

(ii) In Cash:  Dr Bank or Cash Account Cr Sales Account

6.  Cost of goods sold to customers: 

Dr   Cost of sales Account

Cr   Finished goods control Account

7.  (i)  While there is over absorption of production overheads as:

Dr Factory overheads control Account

 Cr P & L Account

(ii)  While there is under absorption of production overheads as:

Dr P and L Account

Cr Factory overheads    control Account

8.  When there are non-manufacturing overheads:

Dr P and L Account

Cr   Non-manufacturing overheads control Account or nonmanufacturing overheads or else expenses are considered like period costs and are consequently not changed To W.I.P control Account.

Job Cost Account

 

 Dr

 

 Cr

 Direct materials issued from stock

X

 Materials returned to the store

 X

 

 Direct wages

 

X

 Materials transferred to other jobs

 

 X

 

 Production overheads absorbed

 

X

 Cost of completed jobs transferred to finished goods A/c

 

 X

 Materials transferred from other jobs

X

 Balance c/d (Total cost of that job)

 X

 

XX

 

 XX

 

Posted Date: 2/7/2013 2:16:39 AM | Location : United States







Related Discussions:- Accounting for job order costing, Assignment Help, Ask Question on Accounting for job order costing, Get Answer, Expert's Help, Accounting for job order costing Discussions

Write discussion on Accounting for job order costing
Your posts are moderated
Related Questions
Give Annual report project: You will pick a publically trade company to do the analysis on with approval of the professor . the following is an outline of what should be in th

Hello, I''m currently doing a research on a company and planning an Activity Based Costing system since the company is using Traditional Costing system to allocate the overhead to

Xander Harris is considering whether to buy a corn and soybean farm in Iowa. The farm will cost $800,000, and Xander will be able to pay this from profits his recently deceased mot

PrivateJets (PJ) is considering expanding its operations in the corporate travel market. Currently, PJ has a capital structure with a 25% debt-equity ratio. Their levered equity

Assume that you are the purchaser of the building at the end of the construction period, and you have paid the developer an amount which gives you a 7% annual return on net revenue

ANALYSIS OF VARIANCE When the actual are not similar from the standards, variance exists. Variance may be unfavorable or favorable. When the actual cost is more than the standa


Find Out the Memorandum Reconciliation Account The givens are the final accounts of a company for the year ending on date 31st December 1999. Manufacturing Trading Loss and Pr

A company is investigating the effect on its cost of capital with respect to the tax rate. Suppose there is a capital structure of 20% debt, 10% preferred stock, and 70% common sto

How do I figure the estimated activity and estimated allocation base?