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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