Cost Accounting

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Brief Contents Introduction to cost accounting Accounting for materials Accounting for labors Accounting for factory overhead Process cost accounting Master budget & flexible budget Standard cost accounting Cost accounting for service business and balance scorecard 2 Cost analysis for decision making

Introduction to Cost Accounting
Pentingnya Cost Accounting Information? Cost accounting menyediakan informasi untuk pengendalian operasi perusahaan dan rencana pada masa yang akan datang.

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Sifat proses manufaktur menyatakan bahwa system informasi akuntansi untuk manufaktur dirancang untuk mengumpulkan data biaya proses produksi yang terperinci.

A.Penggunaan Cost Accounting Information
Informasi yang dihasilkan oleh cost accounting system

a) Penentuan Product Costs and Pricing
The cost accounting information system harus dirancang untuk menentukan unit costs dan total product costs.
Misalnya suatu pabrikan mengeluarkan biaya tenaga kerja $100,000 untuk suatu bulan tertentu merupakan informasi yang kurang berarti. Jika tenaga kerja tersebut menghasilkan 5.000 unit produk jadi, maka the cost of labor adalah $20 per unit menjadi informasi yang penting, karena informasi ini dapat diperbandingkan dengan cost of labor periode sebelumnya atau dengan perusahaan pesaing.
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Informasi unit cost juga berguna untuk

   

Penentuan selling price of a product. Penentuan kemampuan untuk berkompetisi. Penawaran kontrak. Analisis profitabilitas.

b) Planning dan control
Planning adalah proses penentuan objectives or goals for the firm dan penentuan cara untuk mencapainya. Effective planning dapat dilaksanakan dengan menetapkan:  Tujuan operasi manufaktur dinyatakan dengan jelas: the number of units to be produced, the desired quality, the estimated unit cost, the delivery schedules, and the desired inventory levels.  Rencana produksi yang membantu dan mengarahkan perusahaan dalam pencapaian tujuan. Rencana ini mencakup a description of the manufacturing operations to be performed, a projection of 5 human resource needs for the period, and the coordination of the timely acquisition of materials and facilities.

Control (pengendalian) adalah proses pengawasan operasi perusahaan dan penentuan apakah tujuan yang telah ditetapkan dapat dicapai. Effective control dapat dicapai melalui:
Assigning Responsibility. Responsibility harus diberikan secara terperinci dalam rencana produksi. Ukuran responsibility: efficiency, operations, production, and costs dan berada pada responsibility accounting and cost centers. Responsibility accounting:pemberian akuntabilitas cost atau hasil produksi kepada individu yang memiliki wewenang terhadap biaya cost atau produksi tersebut. Responsibility accounting ini memerlukan a cost information system untuk menelusuri data pada cost centers dan managernya. A cost center (department or a group of workers; it could represent one job, one process, or one machine):satu unit aktivitas dalam pabrik dengan ketentuan biaya yang harus (cost) dikeluarkan. Kriteria cost center adalah (a) dasar yang logis untuk penelusuran/alokasi manufacturing costs; (b) seseorang yang mengendalikan dan akuntabel untuk banyak cost yang dibebankan kepada center tersebut. manajer memiliki akuntabel hanya 6 pada cost yang dikendalikannya.

Labor and materials costs yang dibebankan kepada cost center. Tanggung jawab manajer:  Quantity of materials yang digunakan  Number of labor hours worked  The cost of machinery maintenance and repair due to misuse in the cost center  Supervisi tenaga kerja produksi  Peningkatan keahlian tenaga kerja

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b)Periodically Measuring and Comparing Results. c)Taking Necessary Corrective Action
Misalnya manajemen ingin menentukan penyebab the unfavorable yearto-date variance of $2,300 for ‘‘Food’’

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B. Etika Profesi, Sertifikasi CMA dan Tata Kelola Perusahaan
Certified Management Accountant (CMA) diberikan oleh IMA (The Institute of Management Accountants ):

 Lulus 4 tahun perkuliahan,  Memiliki 2 tahun pengalaman professional bidang akuntansi manajemen dan manajemen financial dan  Lulus ujian 4 bagian yang topiknya mencakup business analysis, management accounting and reporting, strategic management, and business applications dengan penekanan utama pada etika yang membuktikan kompetensi yang tinggi bidang akuntansi manajemen.
Untuk menambah kompetensi akuntan manajemen, maka diperlukan kode etik dalam mengelola transaksi 9 perusahaan

Untuk mengatasi penyimpangan pada masa yang akan datang, the Sarbanes-Oxley Act of 2002 telah dikeluarkan untuk melindungi pemegang saham dan pemangku kepentingan lainnya dari perusahaan publik dengan memperbaiki corporate governance. Corporate governance adalah cara pengarahan dan pengendalian perusahaan
Unsur pokok dari undang-undang ini mencakup:  Sertifikasi oleh CEO dan CFO bahwa laporan financial harus menggambarkan hasil operasi perusahaan secara wajar.  Pendirian the Public Company Accounting Oversight Board (PCAOB) untuk menyajikan kesalahan/penyimpangan profesi akuntansi  Pelarangan perusahaan akuntan public untuk penyediaan jasa non auditing kepada perusahaan yang telah diaudit.  Keharusan laporan tahunan perusahaan yang berisi mengenai laporan pengendalian internal termasuk opini manajemen terhadap tingkat keefektifan pengendalian internal perusahaan (internal controls)  Pemberian tanggungjawab untuk penyewaan, pemberian kompensasi dan penghentian perusahaan audit ke tangan komite audit dewan komisaris dan bukan pada manajemen puncak.  Hukuman kriminal yang berat bagi pelanggaran atau perubahan dokumen 10 perusahaan dan pembalasan dendam terhadap ‘‘whistleblowers.’’

C. Hubungan antara Cost Accounting Financial dan Management Accounting.

dengan

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Beberapa judul pekerjaan bagi management accountant di berbagai organisasi mencakup:  Staff Accountant  Cost Accountant  Senior Accountant  Corporate or Division Planner  Financial Analyst  Budget Analyst  Internal Auditor  Finance Manager  Controller  Vice President, Finance  Treasurer  Chief Financial Officer (CFO)  Chief Executive Officer (CEO) 12

Cost accounting merupakan bagian dari kedua jenis akuntansi (financial and management accounting) yang mengumpulkan dan menganalisis cost information. a) Financial accounting memerlukan cost accounting dalam bentuk inventory costing untuk laporan keuangan. b) Management accounting memerlukan cost accounting dalam bentuk product cost data untuk laporan khusus bagu manajemen.

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1) Costs of Goods Sold Dalam menghitung CGS: • Perusahaan dagang menggunakan formula seperti berikut ini.
Beginning merchandise inventory
Plus purchases (merchandise) Merchandise available for sale Less ending merchandise inventory Cost of goods sold

XXX
XXX XXX XXX XXX

Perusahaan manufaktur menggunakan formula seperti berikut ini.
Beginning finished goods inventory Plus cost of goods manufactured Finished goods available for sale Less ending finished goods inventory Cost of goods sold XXX XXX XXX XXX XXX

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2)Inventories Perhitungan inventories sebagai berikut: a) Perusahaan dagang yang menyisakan barang dagangan yang tidak terjual, Current assets: Cash Accounts receivable Merchandise inventory b) Perusahaan manufaktur, inventories mencakup Finished goods, Work in process, dan Materials Current assets: Cash Accounts receivable Merchandise inventory: Finished goods Work in process Materials
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Inventory costing methods mencakup firstin, first-out (FIFO); last-in, first-out (LIFO); and moving average.
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Pada umumnya, perusahaan dagang dan manufaktur menggunakan berbagai subsidiary ledgers, seperti dalam accounts receivable and accounts payable. Perusahaan manufaktur juga menggunakan subsidiary ledgers for the general ledger inventory control accounts: Finished Goods; Work in Process; and Materials. subsidiary ledgers ini berguna untuk menelusuri raw materials secara individu, jobs in process, dan finished jobs on hand.

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D. Elemen Manufacturing Cost.
Manufacturing or production costs diklasifikasikan kedalam elemen: (1) direct materials, (2) direct labor, and (3) factory overhead. 1) Direct Materials Direct Materials adalah materials yang menjadi bagian dari produk manufaktur. Misalnya kayu untuk produk mebel, kain untuk pakaian, kulit untuk sepatu dan sebagainya.

2) Direct Labor Direct labor adalah tenaga kerja yang bekerja secara langsung dengan produk yang diproduksi seperti machine operators atau assembly-line workers
3) Factory Overhead Factory overhead atau manufacturing overhead and factory burden adalah costs yang berkaitan dengan biaya produksi/manufaktur selain direct materials and direct labor.

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Marketing expenses, general administrative costs, and other nonfactory expenditures tidak dimasukkan kedalam costs of manufacturing. Beberpa costs dimasukkan oleh pabrikan mungkin memberikan manfaat kepada operasi produksi dan non produksi. Costs ini mencakup depreciation, insurance, and property taxes untuk gedung (building) yang digunakan oleh the factory and the administrative offices. Dalam kondisi ini, maka allocation of cost harus dilakukan terhadap setiap fungsional/departemen.

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Ketiga unsur manufacturing cost mengalir kedalam rekening work in process inventory. Aliran biaya dapat dijelaskan sebagai barikut: a) The costs of direct materials and direct labor used in production are charged (debited) directly to Work in Process. b) All other factory costs—indirect labor, indirect materials, and other factory expenses—are charged to the factory overhead account and later transferred to Work in Process. Ketika produk jadi selesai diproduksi, maka total dipindahkan dari Work in Process ke Finished Goods. costs

Ketika produk jadi berhasil dijual, maka total costs untuk memproduksi produk yang terjual dipindahkan dari Finished Goods ke Cost of Goods Sold.
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E.Ilustrasi Akuntansi untuk Manufacturing Cost.
Wicker Works, Inc., adalah perusahaan kecil yang memproduksi wicker furniture yakni tables and chairs. Perusahaan menjual produknya ke pengecer. Proses produksi perusahaan digambarkan seperti berikut ini.

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Posisi balance sheet perusahaan pada January 1 2012 disajikan sebagai berikut:

Wicker Works, Inc. Balance Sheet January 1, 2011
Cash Building Machinery and equipment Total assets $ 40,000 Liabilities 250,000 Capital stock 75,000 365,000 Total liabilities and stockholders’ equity $ 0 365,000

365,000

Asumsi: perusahaan hanya memproduksi 1 produk yakni meja saja. Transaksi selama bulan Januari 2012 sebagai berikut: 1) Pembelian materials (rattan, binding cane, nails, tacks, staples, glue, and solvents) senilai $25,000 secara kredit. Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
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2) Selama bulan Januari, perusahaan menggunakan direct materials (rattan and binding cane) costing $20,000 and indirect materials (nails, tacks, staples, glue, and solvents for cleaning) costing $995 untuk produksi. Work in Process (Direct Materials) .. . . . . . . . . . . . . . . . 20,000 Factory Overhead (Indirect Materials) ................................ 995 Materials .......................................................................................... 20,995 3. Total upah dan gaji untuk bulan Januari terdiri dari: Factory employees working on the product, $10,000; Factory supervision, maintenance, and custodial employees, $3,500; and Sales and administrative employees, $6,500. Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Wages Payable . . . . . . . . . . …………. . . . . . . . . . . 20,000 Cash . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 20,000

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4)Pendistribusian the payroll to the appropriate accounts sebagai berikut: Work in Process (Direct Labor) . . . ....................... 10,000 Factory Overhead (Indirect Labor) .......................... 3,500 Selling and Administrative Expenses (Salaries)....... 6,500 Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 20,000
5)Depreciation expense untuk building adalah 6% dari building cost per year dimana untuk the sales and administrative offices occupy one-tenth of the total building, and the factory operation is contained in the other nine-tenths, sehingga alokasi Depreciation expense sebagai berikut: Depreciation expense = 0.06 * $250,000 = $15,000 dengan alokasi:  the sales and administrative offices= 1/10 * $15,000 = $1,500 per tahun = $1,500/12=$125 per bulan  the factory operation = 9/10 * $15,000 = $13,500 per tahun = $13,500/12=$1,125 per bulan Factory Overhead (Depreciation of Building) ............................... 1,125 Selling and Administrative Expenses (Depreciation of Building) . 125 Accumulated Depreciation—Building . . . . . . . . .. . . . . . . . . . . . …….. . 1,250 28

6)Depreciation expense for the $75,000 of factory machinery and equipment is 20% of original cost per year. Depreciation expense = $75,000 * 0.2 * 1/12 = $1,250
Factory Overhead (Depreciation of Machinery and Equipment). . 1,250 Accumulated Depreciation—Machinery and Equipment . . ….. . . . . . 1,250 7)The cost of heat, light, and power for the month was $1,500. Factory Overhead (Utilities) . . ....................................... 1,350 Selling and Administrative Expenses (Utilities) . . . . . . 150*) Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 8)Miscellaneous selling and administrative expenses for telephone and fax, copying charges, office supplies, travel, and rental of office furniture and equipment totaled $3,750, on account. Selling and Administrative Expenses . . . . . .................... 3,750 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,750

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Factory Overhead memiliki komponen costs sebagai berikut:
Transaction Number 2 4 5 6
7

Discription
Indirect Materials Indirect Labor Depreciation of Building Depreciation of Machinery and Equipment Utilities Total

Amount
$ 995 3,500 1,125 1,250 1,350 $8,220

9)Saldo Factory Overhead ditransfer ke Work in Process Work in Process ................................................ 8,220 Factory Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,220 Komponen manufacturing cost—direct materials, direct labor, and factory overhead diakumulasikan di Work in Process.
Transaction Number 2 4 9 Discription
Direct Materials Direct Labor Factory overhead Total

Amount
$ 20,000 10,000 $8,220 30 38,220

$

10)Dengan asumsi semua work in process menjadi finished goods, maka the cost of these goods from Work in Process to Finished Goods.
Finished Goods ........................................ 38,220 Work in Process .......................................................... 38,220 Jika selama bulan Januari, perusahaan memproduksi 500 meja, maka unit cost meja tersebut adalah:

Unit cost meja =

= $$76.44/meja 𝟓𝟎𝟎 𝐮𝐧𝐢𝐭
31 𝟑𝟖

,𝟐𝟐𝟎

Discription Direct Materials Direct Labor Factory overhead

Total $20,000 10,000 8,220 $38,220

Unit produced 500 500 500

unit cost $ 40.00 20.00 16.44 $76.44

Unit cost digunakan sebagai dasar untuk menentukan selling price meja. Jika perusahaan menetapkan 50% mark-on percentage (untuk menutup the selling and administrative expenses dan memperoleh reasonable profit), maka selling pricenya adalah: Selling price = 1.5 * $76.44 = $114.66/meja. Salah satu fungsi cost accounting adalah menetapkan the cost of manufacturing a unit of product secara akurat untuk membantu manajemen dalam merencanakan dan mengendalikan operasi serta membuat marketing decisions. 32

11)Perusahaan melunasi hutang materials $25,000 Accounts Payable . . ............................................. 25,000 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 25,000
12)Perusahaan menjual 400 meja ke pengecer dengan net price of $114.66 Accounts Receivable (400 $114.66) . .............. 45,864 Sales ....................................................................................... 45,864 Cost of Goods Sold (400 $76.44) ..................... 30,576 Finished Goods . . .................................................................... 30,576 13)Perusahaan menerima pelunasan piutang $33, Cash . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 33,000 Accounts Receivable . . . . . . .................................................... 33,000

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F. Cost Accounting System.
Fungsi cost accounting: The determination of product costs—both total costs for the period and unit cost. Cost diakumulasikan untuk setiap periode tertentu misalnya bulanan atau per tiga bulanan. Kemudian pada akhir periode, the total costs dibagi dengan unit yang diproduksi untuk memperoleh cost per unit. Cost control. Jika pada bulan Februari the cost of direct labor meningkat dari $20 menjadi $22 per unit. Masalahnya adalah apakah kenaikan cost of direct labor disebabkan oleh kenaikan general cost of direct labor atau worker inefficiency. Apakah kenaikan cost of direct labor terjadi diseluruh manufacturing process atau hanya a particular department or job.

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Penyedian data bagi manajemen untuk kepentingan effective cost control, maka ada 2 jenis cost accounting systems have been developed:  the process cost system and  the job order cost system. Kedua cost accounting systems ini mengumpulkan cost data dan mengalokasikan costs to goods manufactured. Untuk menentukan metode yang tepat bagi suatu perusahaan, maka manufacturing operations dikelompokkan menjadi: special order and continuous or mass production.

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1) Special Order Dalam Job order cost system, outputnya adalah special or custom-made products (each product is made to order). Contoh perusahaan pembuat kapal laut atau pesawat, pabrik baja structural dan sebagainya.

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2)Continuous or Mass Production
Jenis operasi ini menghasilkan produk yang homogeny seperti Toyota Prius automobile untuk produk tunggal, atau Pepsi, Diet Pepsi, and Pepsi One soft drinks yang merupakan produk yang bervariasi.
Process cost system, outputnya adalah homogeneous product. Wicker Works utilized a process cost system in the preceding example to account for its only product, a single style of table.

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3) Combination of Systems Banyak perusahaan menerapkan a job order cost and a process cost system. Misalnya suatu perusahaan mebel kayu ulin memproduksi satu set meja kursi, tapi perusahaan juga menerima pesanan dari konsumen. The job order and process cost accounting systems merupakan pokok yang digunakan dalam manufacturing organizations. Sistem ini menyediakan cost data untuk cost control dengan keterbatasannya. Meskipun system ini memungkinkan untuk menentukan what a product actually costs, tapi system ini tidak memiliki alat untuk menentukan what the product should have cost.

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A standard cost system merupakan cost system yang digunakan baik job order or a process cost system. A standard cost system ini menggunakan predetermined standard costs untuk membantu manajemen dalam make decisions regarding the efficiency of operations.
Standard costs are costs that would be incurred under efficient operating conditions and are forecast before the manufacturing process begins. During operations, an organization compares the actual costs incurred with these predetermined standard costs. ‘‘Variances,’’ or differences, are then calculated. These variances reveal which performances deviate from the standard, and thus they provide a basis on which management can take appropriate action to eliminate inefficient operating conditions.

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G.Ilustrasi Job order Cost System.
Dengan a job order cost system, costs diakumulasikan berdasarkan job/pekerjaan/order. Manfaat job order cost system:  Determine its selling price for each order  A job with a set price, the profit or loss on the job can be readily determined by comparing the cost with the contract price.  Assist management in preparing bids for similar jobs in the future Contoh. Wicker Works, Inc. memproduksi tables and chairs pesanan untuk bulan Februari. a) From Strictly Wicker: to manufacture 500 specifications; contract price, $36,000. Job No. 101 order. b) From Patio Providers: to manufacture 500 specifications; contract price, $59,300. Job No. 102 order.

dan menerima 2 chairs to their is assigned to this

tables to their is assigned to this

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Transaksi selama bulan Februari untuk memenuhi pesanan tersebut sebagai berikut: 1) Indirect materials with a cost of $5,250 are issued to the factory, and direct materials are issued as follows:
Rattan Binding Cane
Job 101 $ 8,200 4,000 $ 12,200 Job 102 $16,000 2,000 $18,000

Work in Process (Jobs 101 and 102) ...................... 30,200 Factory Overhead (Indirect Materials) . . . . . . . . . . . . 5,250 Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,450

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2) Indirect labor costs of $4,360 and direct labor costs are incurred as f ollows:
Direct Labor Job 101 $ 6,000 Job 102 $7,500

Work in Process (Jobs 101 and 102) ...................... 13,500 Factory Overhead (Indirect Labor) . . . . . . . . . .......... 4,360 Payroll ............................................................................................. 17,860
3) Monthly depreciation expense for the building, allocated according to the square footage used by manufacturing (90%) and selling and administrative (10%), is recorded as follows: Factory Overhead (Depreciation of Building) . ............................... 1,125 Selling and Administrative Expenses (Depreciation of Building) . . . 125 Accumulated Depreciation—Building . . . . . . . . . . …….. . . . . . . . . . . . . . . . 1,250 4) The entry to record monthly depreciation for machinery and equipment, all of which is used for manufacturing operations, is recorded as follows: Factory Overhead (Depreciation of Machinery and Equipment) . . . . 1,250 Accumulated Depreciation—Machinery and Equipment . . . . . …………. . 1,250
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5) The cost of utilities for the month of February is $1,300, again allocated by building square footage, recorded as follows: Factory Overhead (Utilities) . . . . . . . . ............................. 1,170 Selling and Administrative Expenses (Utilities) . . . ......... 130 Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300 6)Total charges to Factory Overhead for the month are shown as follows
Indirect materials Indirect labor Depreciation of building Depreciation of machinery equipment Utilities Factory Overhead $ 5,250 4,360 1,125 1,250 1,170 $13,155

and

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Assume that Jobs 101 and 102 are the only jobs worked on during the period and that factory overhead is allocated as follows: 40% to Job 101, 60% to Job 102.
Job 101 Factory Overhead $5,262 Job 102 $ 7,893

Work in Process (Jobs 101 and 102) . . . . . ............. 13,155 Factory Overhead . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 13,155

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7) Assuming that both jobs were completed by the end of the month, the costs of the completed jobs would be transferred to the finished goods inventory control account: Finished Goods . ................................................ 56,855 Work in Process ................................................................. 56,855 8) When the goods are shipped and billed to the customers, the following entries are made to record the sale and the cost of the jobs: Accounts Receivable . . . . . . . . . . . . . . 95,300 Sales ............................................................................ 95,300 Cost of Goods Sold .............................. 56,855 Finished Goods . . . ....................................................... 56,855

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Work in Process in the Manufacturing Statement
If there is work in process at the beginning and at the end of the month, it will be shown in the statement of cost of goods manufactured. To illustrate, assume that Wicker Works, Inc.’s statement for June is as follows:

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SOAL. I.

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During the month of October, the following transactions took place: a) Raw materials at a cost of $50,000 and general factory supplies costing $8,000 were purchased on account. (Materials and supplies are recorded in the materials account.) a) Raw materials to be used in production costing $41,000 and miscellaneous factory supplies costing $5,500 were issued. b) Wages and salaries incurred and paid for the month were as follows: factory wages (including $2,500 indirect labor), $34,000, and selling and administrative salaries, $5,000. (Ignore payroll withholdings and deductions.) c) Distributed the payroll in (c). d) Depreciation was recorded for the month at an annual rate of 5% on the building and 20% on the factory equipment and office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices. e) During the month, various other expenses totaling $5,200 were incurred on account. The company has determined that one-fourth of this amount is allocable to the office function. f) Total factory overhead costs were transferred to Work in Process. g) During the month, goods with a total cost of $79,000 were completed and transferred to the finished goods storeroom. h) Sales for the month totaled $128,000 for goods costing $87,000 to manufacture. (Assume that all sales were made on account.) i) Accounts receivable in the amount of $105,000 were collected. 59 j) Accounts payable totaling $55,000 were paid.

Required: 1. Prepare journal entries to record the transactions. 2. Set up T-accounts for all accounts listed in the September 30, 2011, Post-Closing Trial Balance and for Cost of Goods Sold, Factory Overhead, Selling and Administrative Expenses, Sales, and Wages Payable. Post the beginning trial balance and the journal entries prepared in Part 1 to the accounts and calculate the balances in the accounts on October 31. 3. Prepare a statement of cost of goods manufactured, an income statement, and a balance sheet.

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II. Job Cost; Journal Entries; Inventory Analysis; Manufacturing Statement Mesa Manufacturing Co. manufactures engines that are made only on customers’ orders and to their specifications. During January, the company worked on Jobs 2525, 2526, 2527, and 2528. The following figures summarize the cost records for the month

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Jobs 2525 and 2526 have been completed and delivered to the customers at a total selling price of $852,000, on account. Job 2527 is finished but has not yet been delivered. Job 2528 is still in process. There was no work in process at the beginning of the month. Required: 1. Prepare the summary journal entries for the month to record thedistrib ution of materials, labor, and overhead costs. 2. Prepare a summary showing the total cost of each job completed during the month or in process at the end of the month. Also, determine the cost of the inventories of completed engines and engines in process at the end of the month. 3. Prepare the journal entries to record the completion of the jobs and the sale of the jobs. 4. Prepare a statement of cost of goods manufactured.
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