Cost Accounting - Job Order Costing System - Examples Example-1-Cost accounting Cycle. ABC is a manufacturing company that uses normal costing system. The company incurs MOH on production based on the Machine hours. The company estimated that total MOH for Jan 2020 will be $700,000 and total estimated MH is 100,000 . ABC company has the following balances on the 1 st of Jan 2020: During Jan 2020, the following transactions occurred: 1. The company purchased $1,000,000DM and $200,000 Ind. Material 2. The company issued $900,000 of DM and $150,000 of Ind. Material to production. 3. During the month, the total wages and salaries were $750,000, in which $400,000 of them were direct. 4. Total actual MH during Jan were 102,000 MH. 5. The company incurred the following MOH during Jan: $100,000 machine depreciation, $20,000 factory rent, $10,000 factory utilities, $10,000 factory property taxes, and $90,000 other plant miscellaneous cost. 6. the EB of WIP and FG in 31st of Jan 2020 were $170,000 and $250,000 respectively. Required: 1. journalize the entries for all transactions occurred during Jan 2020. 2. Calculate the pre-determined rate of MOH allocation. 3. Prepare T accounts for the production cycle. 4. Show the proper accounting treatment for the difference between actual MOH and budgeted MOH using the three methods. ABC Company has the following jobs under process on Jan the 1II2020 : The company uses normal costing system and incurred MOH on job orders based on the DLH. The estimated MOH for the first quarter of 2020 was $500,000 and the estimated DLH were 100,000 . During the first quarter, job orders were incurred with following costs and hours: Total actual MOH that was incurred during the first quarter of 2020 were $445,000. Job orders 110,111,114,115, and 116 were completed and removed to the finished goods account. - Jobs 110,111,114, and 116 were sold with total revenues of $2,500,000 - Total operating expenses during the period were $320,000 Required: 1. Journalize the required entries for all transactions occurred during first quarter of 2020