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Cost Accounting Essay

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Below is an essay on "Cost Accounting" from Anti Essays, your source for research papers, essays, and term paper examples.

Question # 2
USE different costing method:
Ahsan Corporation produce special products to customer specifications and uses job order cost system. The following data relates to its operation for the month of December, 1996.
  1) Purchase raw material on Account $ 42000
  2) Material issued to factory $ 33000 of which $3000 was used indirectly
  3) Labor used: Direct $ 50000 Indirect $ 5000
  4) Factory overhead cost incurred $ 40000
  5) Factory overhead is applied at 100% of direct labor cost
  6) Jobs were completed to the extent of 90%
  7) Goods sold on Account   $ 170000
  8) Finished goods inventory valued at $ 10000
 
Required:
Record the above transaction in general journal entries and ledger account.
b)
The information below is taken from the financial statements of Usama Company at the end of year 1996.
  1) Good s in process inventory December 31, 1996                                     $ 30000
  2) Cost of raw material used                                                                                 156000
  3) Cost of goods manufactured                                                                             372000  
  4) Factory overhead(75% of Direct Labor Cost )                                               90000
Required: Compute the cost of goods in process inventory at January 1, 1996

2(a)

b) Calculation of COGS in process Inventory at Jan, 1996
Costs of goods manufactured                                         372,000
Goods in process ending                                                   30,000
Total goods in process                                                     402,000
Less:
Manufacturing cost for the period
Material                                                                             156,000
DL (90,000x.75)                                                                 120,000
FOH                                                                                       90,000...

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"Cost Accounting". Anti Essays. 11 Dec. 2018

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Cost Accounting. Anti Essays. Retrieved December 11, 2018, from the World Wide Web: http://trenmayamx.com/free-essays/Cost-Accounting-727763.html