Principles of Managerial Accounting · free preview
Journal Entries for a Job Order Cost System
The job order cost cycle runs on a standard journal entry vocabulary, from purchasing materials through applying overhead, completing jobs, selling them, and closing the overhead gap at period end.
1. The entries in sequence
The entries in sequence
2. Completion and sale
Completion and sale
3. A full mini-cycle illustrated
A full mini-cycle illustrated
4. Why the vocabulary is standardized
Why the vocabulary is standardized
5. Direct materials entry
Requisitions send 34,000 dollars of direct materials and 4,000 dollars of indirect materials to production. Which entry records the requisition?
6. Overhead application entry
Applying overhead of 80,000 dollars at the predetermined rate is recorded how?
7. Overhead account at closing
At period end, the manufacturing overhead account holds 88,000 dollars of debits and 84,000 dollars of credits. What closing entry is needed?
8. Finished goods meaning
After the cycle's entries post, the finished goods account holds which costs?
9. Overhead control credit source
Credits to the manufacturing overhead account during the period come from overhead ____ to jobs. One word.
10. Completion transfer accounts
Job completion moves cost from work in process to ____ goods. One word.
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