Job Order Costing - Transaction Summary

Topics: Depreciation, Expense, Supply chain management terms Pages: 7 (820 words) Published: March 7, 2013
COST ACCUMULATION: SUMMARY OF ESSENTIAL TRANSACTION JOURNAL ENTRIES:

TRANSACTIONSJOURNAL ENTRIES

1. Purchase of Direct Raw Materials

- Initial Journal EntryRaw Materials - Directxxx Cash / Accounts Payablexxx
- To record purchase of Direct Raw Materials.

2. Purchase of Indirect Raw Materials

- Initial Journal EntryRaw Materials - Indirectxxx Cash / Accounts Payablexxx
- To record purchase of Indirect Raw Materials.

3. Issuance of Direct Raw Materials

- Initial Journal EntryRaw Materials Usedxxx Raw Materials - Directxxx
- To record issuance of Direct Raw Materials to Production.

- Closing Journal Entry to WIPWork in Processxxx Raw Materials Usedxxx
- To close issued Direct Raw Materials to Work in Process.

Summary Entry:

- Compound Journal EntryWork in Processxxx Raw Materials - Directxxx
- To record issuance of Direct Raw Materials to Production.

TRANSACTIONSJOURNAL ENTRIES

4. Recording of Indirect Materials Issuances

- Initial Journal EntryIndirect Materials Usedxxx Raw Materials – Indirectxxx
- To record issuance of Indirect Materials to Production.

- Closing Journal Entry to FOHFactory Overhead - Controlxxx Indirect Materials Usedxxx
- To close issued Indirect Materials to Factory Overhead.

Summary Entry:

- Compound Journal EntryFactory Overhead - Controlxxx Raw Materials - Indirectxxx
- To record issuance of Indirect Materials to Production.

5. Recording of Direct Labor

- Initial and/or Adjusting Journal EntryDirect Labor Costxxx Cash / Accrued Expensesxxx
- To record Direct Labor Cost for the period.

- Closing Journal Entry to WIPWork in Processxxx Direct Labor Costxxx
- To close Direct Labor Cost to Work in process. Summary Entry:

- Compound Journal EntryWork in Processxxx Cash / Accrued Expensesxxx
- To record Direct Labor Cost for the period.

TRANSACTIONSJOURNAL ENTRIES

6. Recording of Indirect Labor

- Initial and/or Adjusting Journal EntryIndirect Labor Costxxx Cash / Accrued Expensesxxx
- To record Indirect Labor Cost for the period.

- Closing Journal Entry to FOHFactory Overhead - Controlxxx Indirect Labor Costxxx
- To close Indirect Labor Cost to Factory Overhead. Summary Entry:

- Compound Journal EntryFactory Overhead - Controlxxx Cash / Accrued Expensesxxx
- To record Indirect Labor Cost for the period.

7. Recording of Other Indirect Expenses besides Indirect Material and Indirect Labor.

- Initial and/or Adjusting Journal EntryUtilities Expensexxx...
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