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  • Flow of Costs - AFAR

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    Rujean Salar Altejar
    4 views28 pages
    The document discusses how costs flow in a job order costing system. It asks how material costs, labor costs, and overhead costs flow for job orders. Material costs flow by debiting work in process inventory and crediting raw material inventory for each job. Labor costs flow by debiting work in process inventory and crediting factory payroll for each job. Overhead costs flow by debiting work in process inventory and crediting factory overhead for each job.

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    The document discusses how costs flow in a job order costing system. It asks how material costs, labor costs, and overhead costs flow for job orders. Material costs flow by debiting work in process inventory and crediting raw material inventory for each job. Labor costs flow by debiting work in process inventory and crediting factory payroll for each job. Overhead costs flow by debiting work in process inventory and crediting factory overhead for each job.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views28 pages

    Flow of Costs - AFAR

    Uploaded by

    Rujean Salar Altejar
    The document discusses how costs flow in a job order costing system. It asks how material costs, labor costs, and overhead costs flow for job orders. Material costs flow by debiting work in process inventory and crediting raw material inventory for each job. Labor costs flow by debiting work in process inventory and crediting factory payroll for each job. Overhead costs flow by debiting work in process inventory and crediting factory overhead for each job.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 28

    Home Future accountant

    Flow of Costs
    What are to be
    discuss?
    How do job order material costs flow? How do job order overhead costs flow?

    How do job order labor costs flow? Summary of cost flows


    Home Future accountant

    How do job order material costs flow?


    Home Future accountant

    How do job order material costs flow?


    Home Future accountant

    How do job order material costs flow?


    Home Future accountant

    How do job order material costs flow?


    Home Future accountant

    How do job order material costs flow?


    Home Future accountant

    How do job order material costs flow?


    Home Future accountant

    How do job order material costs flow?


    Home Future accountant

    How do job order labor costs flow?


    Home Future accountant

    How do job order labor costs flow?


    Home Future accountant

    How do job order labor costs flow?


    Home Future accountant

    How do job order labor costs flow?


    Home Future accountant

    How do job order labor costs flow?


    Home Future accountant

    How do job order labor costs flow?


    Home Future accountant

    How do job order overhead costs flow?


    Home Future accountant

    How do job order overhead costs flow?


    Home Future accountant

    How do job order overhead costs flow?


    Home Future accountant

    How do job order overhead costs flow?


    Home Future accountant

    How do job order overhead costs flow?


    Home Future accountant

    How do job order overhead costs flow?


    Summary of cost flows
    Summary of cost flows
    MATERIALS

    Dr. Goods in Process Inv. – Job 1 150


    Cr. Raw Material Inventory 150

    Dr. Goods in Process Inv. – Job 2 200


    Cr. Raw Material Inventory 200

    Dr. Goods in Process Inv. – Job 3 400


    Cr. Raw Material Inventory 400

    Dr. Goods in Process Inv. – Job 4 300


    Cr. Raw Material Inventory 300

    Dr. Goods in Process Inv. – Job 5 100


    Cr. Raw Material Inventory 100
    Summary of cost flows
    MATERIALS
    Dr. Goods in Process Inv. – Job 1 1000
    Cr. Factory Payroll 1000

    Dr. Goods in Process Inv. – Job 2 3200


    Cr. Factory Payroll 3200

    Dr. Goods in Process Inv. – Job 3 500


    Cr. Factory Payroll 500

    Dr. Goods in Process Inv. –LABOR


    Job 4 600
    Cr. Factory Payroll 600

    Dr. Goods in Process Inv. – Job 5 300


    Cr. Factory Payroll 300
    Summary of cost flows
    MATERIALS

    LABOR
    Summary of cost flows
    OVERHEAD

    Dr. Goods in Process Inv. – Job 1 1600


    Cr. Factory Overhead 1600

    Dr. Goods in Process Inv. – Job 2 3200


    Cr. Factory Overhead 3200

    Dr. Goods in Process Inv. – Job 3 800


    Cr. Factory Overhead 800

    Dr. Goods in Process Inv. – Job 4 960


    Cr. Factory Overhead 960

    Dr. Goods in Process Inv. – Job 5 480


    Cr. Factory Overhead 480
    Summary of cost flows
    OVERHEAD
    Summary of cost flows
    Summary of cost flows

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