A B C D E F G H K L M N O P Q R S U Chapter 3: Job Order Costing - Cost Flows and External Reporting: Foundational 15 Other Hints: Cost Flows Manufacturing Overhead is: Remember: Payable if incurred and not paid, cash if paid Work in Process - Finished Goods - Cost of Goods Sold Debited to MOH if actual Remember: Accumulated Depreciation if Depreciation Job Costs start in Work in Process (DM, DL, Applied MOH) Credited to MOH if applied When a Job is completed, it gets transferred to Finisged Goods Whan a Job is sold, billed, shipped, etc., it gets transferred to Cost of Goods Sold (External Reporting) Costs to Produce a Job: DM WIP FG COGS DL Dr CL Dr CL Dr. CL Applied MOH BE BB when a job sold, Direct Manufacturing Costs get charged to WIP DM job is costs shipped, Indirect Manufacturing Costs (Actual) get charged to MOH DL completed transferred billed, etc App. MOH transferred from transferred MOH: if Actual = Debit to MOH Total OFG WIP to COGS MOH: if Actual = Credit (Cash, Payable, Accumulated Depreciation) MOH: if Applied = Debit to WIP EB EB EB MOH: if Applied = Credit to MOH Manufacturing Overhead MOH Account used to track Or. Cr. actual $$ of MOH vs. Date Accounts and Explanation PR Debit Credit applied $$ of MOH Work in Process Actual MOH Applied MOH Raw Materials At end of period you are: (material used in production - Direct Materials) overapplied or underapplied Work in Process Wages Payable or Cash Close or dispose of directly to COGS (wages charged to production - Direct Labor) Work in Process Manufacturing Overhead cturing Overhead APPLIED to production) Manufacturing Overhead Raw Materials (Indirect Materials used in Production) Manufacturing Overhead Wages Payable or Cash (Indirect Labor - Manufacturing) Manufacturing Overhead Payable or Cash or Accumulated Depreciation other ACTUAL indirect Manufacturing Costs)Raw Materials purchased on account, $510,000 Raw Materials used in production. $480,000 (ALL Direct Materials] Salaries and Wages for employee services (accrued NOT paid]: Direct Labor = $600,000 Indirect Labor = $150,000 Selling and Administrative Expenses = $240,000 d Incurred various selling and administrative expenses $361000 Incurred various manufacturing overhead costs $500,000 Manufacturing Overhead Cost APPLIED to production company ACTUALLY worked 41,000 direct labor hours Jobs Costing $1,680,000 to manufacture according to their job cos sheets were COMPLETED during the year Jobs were SOLD on account to customers during the year for a total of $2,800,000. These jobs cost $1,690,000 to manufacture according to their job cost sheets. REQUIRED: Joumalize Post to T-Accounts Compute Ending Balances Compute Over or Under Applied Manufacturing Overhead Dispose of Over or Underapplied Manufacturing Overhead DIRECTLY to COGS Adjusted Cost of Goods Sold Gross Margin Net Operating Income