Xacc/280 Week 4 Managerial Accounting

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Worksheet 4 – Job Costing Question #1 – Potts Company a) Dr – material Inventory - $75000. Cr – Accounts Payable - $75000. - Its on Account b) Dr – WIP $41000 Dr - /P.O. H./M.O.H $2000 - Indirect Cr - Material Inventory - $43000 c) Dr – WIP - $75000 Cr Wages Payable/Accrued Wages/Accrued Payroll - $75000 - Direct Labour d) Dr -Finished Goods - $226750 Cr – WIP - $226750 e) Dr – COGS -$138000 Cr- Finished Goods - $138000 f) Dr – WIP – $93750 ( 125% * $75000- Direct Labour Cost) Cr – P.O.H./M.O.H. - $93750 g) Dr – COGS - $1250 – ( Overhead Variance ) Cr - P.O.H/M.O.H. -$1250 Production .O.H / Manufacturing O.H. – A/C Dr Cr…show more content…
93000 COGS 1250 – O.H Variance- Under applied Total $ 95000 $95000 -With Job costing we are specifically tracing costs in a Job Costing System and as - such we will be focusing on the journal entries associated with tracing these costs. - We are still dealing with the main elements of production costs: Direct material, Direct labour and Production/manufacturing overheads. - Materials – Direct (WIP); Indirect (M.O.H.) - Manufacturing Wages/Labour – There are two ways of journalizing this

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