Manager at Minoa Manufacturing have been using various teams to collect production data during 2017, the end of the first year of operations in the current fiscal year. Production costs refer to the costs incurred by a business when manufacturing a good or providing a service. Production costs include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. The following transactions and data of Minoa Manufacturing Co., were gathered:

Team A has found that raw materials at a cost of $140,000 were purchased on account. It has been confirmed that all material issued to production. Direct materials issued to the factory:

Job 101 $50,000

Job 102 30,000

Job 103 60,000

Team B has found that wages and salaries incurred (8% withhold taxes and 7% social security will be charged) for the year, entirely $100,000 classified as direct labor. Distributed the payroll as direct labor classified to the factory:

Job 101 $40,000

Job 102 30,000

Job 103 20,000

Team C indicates that during the year, various other expenses totaling $80,000 were incurred in cash. The service departments are allocated using reciprocal method. Building maintenance using direct labor hours where factory office using floor space occupied as cost driver as followed:

Direct labor hours: Building maintenance 200 hours Factory office 200 hours

Job 101 has 200 production hours

Job 102 has 300 production hours

Job 103 has 100 production hours

Floor space occupied: Building maintenance 200 square feet, Factory office 400 square feet,

Job 101 has 300 square feet of production site

Job 102 has 400 square feet of production site

Job 103 has 700 square feet of production site

During the year, Job 101 and Job 103 were completed and transferred to the finished goods storeroom. Job 101 shipped to the customer and billed at $120,000. All accounts receivable was collected. Furthermore, Ending inventories are listed as followed: Work in process inventory $50,000; Finished goods inventory 50,000

Question: What are cost elements?

What documents are related to these transactions?

How production cost should be accumulated. How journal entries should be recorded?