Cost Accounting

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 Brief Contents
1. Introduction to cost accounting
2. Accounting for materials
3. Accounting for labors
4. Accounting for factory overhead
5. Process cost accounting
6. Master budget & flexible budget
7. Standard cost accounting
8. Cost accounting for service business and
balance scorecard
9. Cost analysis for decision making 2
 Introduction to Cost Accounting

Pentingnya Cost Accounting Information?

Cost accounting menyediakan informasi untuk
pengendalian operasi perusahaan dan rencana pada
masa yang akan datang.

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Sifat proses manufaktur menyatakan bahwa system
informasi akuntansi untuk manufaktur dirancang untuk
mengumpulkan data biaya proses produksi yang terperinci.

A.Penggunaan Cost Accounting Information

Informasi yang dihasilkan oleh cost accounting system

a) Penentuan Product Costs and Pricing

The cost accounting information system harus dirancang untuk
menentukan unit costs dan total product costs.
Misalnya suatu pabrikan mengeluarkan biaya tenaga kerja $100,000
untuk suatu bulan tertentu merupakan informasi yang kurang berarti.
Jika tenaga kerja tersebut menghasilkan 5.000 unit produk jadi, maka
the cost of labor adalah $20 per unit menjadi informasi yang penting,
karena informasi ini dapat diperbandingkan dengan cost of labor
periode sebelumnya atau dengan perusahaan pesaing.

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Informasi unit cost juga berguna untuk

Penentuan selling price of a product.

Penentuan kemampuan untuk berkompetisi.
Penawaran kontrak.
Analisis profitabilitas.
b) Planning dan control
Planning adalah proses penentuan objectives or goals for the rm dan
penentuan cara untuk mencapainya. Effective planning dapat
dilaksanakan dengan menetapkan:
Tujuan operasi manufaktur dinyatakan dengan jelas: the number
of units to be produced, the desired quality, the estimated unit
cost, the delivery schedules, and the desired inventory levels.
Rencana produksi yang membantu dan mengarahkan perusahaan
dalam pencapaian tujuan. Rencana ini mencakup a description of
the manufacturing operations to be performed, a projection of
human resource needs for the period, and the coordination of5 the
timely acquisition of materials and facilities.
Control (pengendalian) adalah proses pengawasan operasi
perusahaan dan penentuan apakah tujuan yang telah
ditetapkan dapat dicapai. Effective control dapat dicapai
melalui:

Assigning Responsibility.
Responsibility harus diberikan secara terperinci dalam rencana produksi.
Ukuran responsibility: efciency, operations, production, and costs dan
berada pada responsibility accounting and cost centers.
Responsibility accounting:pemberian akuntabilitas cost atau hasil
produksi kepada individu yang memiliki wewenang terhadap biaya cost
atau produksi tersebut. Responsibility accounting ini memerlukan a cost
information system untuk menelusuri data pada cost centers dan
managernya.
A cost center (department or a group of workers; it could represent one
job, one process, or one machine):satu unit aktivitas dalam pabrik dengan
ketentuan biaya yang harus (cost) dikeluarkan. Kriteria cost center adalah
(a) dasar yang logis untuk penelusuran/alokasi manufacturing costs; (b)
seseorang yang mengendalikan dan akuntabel untuk banyak cost yang
dibebankan kepada center tersebut. manajer memiliki akuntabel hanya 6
pada cost yang dikendalikannya.
Labor and materials costs yang dibebankan kepada cost center.
Tanggung jawab manajer:
Quantity of materials yang digunakan
Number of labor hours worked
The cost of machinery maintenance and repair due to misuse
in the cost center
Supervisi tenaga kerja produksi
Peningkatan keahlian tenaga kerja

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b)Periodically Measuring and Comparing Results.
c)Taking Necessary Corrective Action
Misalnya manajemen ingin menentukan penyebab the unfavorable year-
to-date variance of $2,300 for Food

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B. Etika Profesi, Sertifikasi CMA dan Tata Kelola
Perusahaan
Certied Management Accountant (CMA) diberikan oleh IMA (The
Institute of Management Accountants ):

Lulus 4 tahun perkuliahan,

Memiliki 2 tahun pengalaman professional bidang akuntansi
manajemen dan manajemen financial dan
Lulus ujian 4 bagian yang topiknya mencakup business
analysis, management accounting and reporting, strategic
management, and business applications dengan penekanan
utama pada etika yang membuktikan kompetensi yang tinggi
bidang akuntansi manajemen.

Untuk menambah kompetensi akuntan manajemen, maka

diperlukan kode etik dalam mengelola transaksi
perusahaan 9
 Untuk mengatasi penyimpangan pada masa yang akan
datang, the Sarbanes-Oxley Act of 2002 telah dikeluarkan
untuk melindungi pemegang saham dan pemangku
kepentingan lainnya dari perusahaan publik dengan
memperbaiki corporate governance. Corporate governance
adalah cara pengarahan dan pengendalian perusahaan
Unsur pokok dari undang-undang ini mencakup:
Sertifikasi oleh CEO dan CFO bahwa laporan financial harus menggambarkan
hasil operasi perusahaan secara wajar.
Pendirian the Public Company Accounting Oversight Board (PCAOB) untuk
menyajikan kesalahan/penyimpangan profesi akuntansi
Pelarangan perusahaan akuntan public untuk penyediaan jasa non auditing
kepada perusahaan yang telah diaudit.
Keharusan laporan tahunan perusahaan yang berisi mengenai laporan
pengendalian internal termasuk opini manajemen terhadap tingkat keefektifan
pengendalian internal perusahaan (internal controls)
Pemberian tanggungjawab untuk penyewaan, pemberian kompensasi dan
penghentian perusahaan audit ke tangan komite audit dewan komisaris dan
bukan pada manajemen puncak.
Hukuman kriminal yang berat bagi pelanggaran atau perubahan dokumen 10
perusahaan dan pembalasan dendam terhadap whistleblowers.
C. Hubungan antara Cost Accounting dengan
Financial dan Management Accounting.

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Beberapa judul pekerjaan bagi management accountant
di berbagai organisasi mencakup:
Staff Accountant
Cost Accountant
Senior Accountant
Corporate or Division Planner
Financial Analyst
Budget Analyst
Internal Auditor
Finance Manager
Controller
Vice President, Finance
Treasurer
Chief Financial Ofcer (CFO)
Chief Executive Ofcer (CEO) 12
Cost accounting merupakan bagian dari kedua jenis akuntansi (nancial
and management accounting) yang mengumpulkan dan menganalisis
cost information.
a) Financial accounting memerlukan cost accounting dalam bentuk
inventory costing untuk laporan keuangan.
b) Management accounting memerlukan cost accounting dalam bentuk
product cost data untuk laporan khusus bagu manajemen.

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1) Costs of Goods Sold
Dalam menghitung CGS:
Perusahaan dagang menggunakan formula seperti
berikut ini.
Beginning merchandise inventory XXX
Plus purchases (merchandise) XXX
Merchandise available for sale XXX
Less ending merchandise inventory XXX
Cost of goods sold XXX

Perusahaan manufaktur menggunakan formula seperti

berikut ini.
Beginning nished goods inventory XXX
Plus cost of goods manufactured XXX
Finished goods available for sale XXX
Less ending nished goods inventory XXX 14
Cost of goods sold XXX
2)Inventories
Perhitungan inventories sebagai berikut:
a) Perusahaan dagang yang menyisakan barang dagangan yang
tidak terjual,
Current assets:
Cash
Accounts receivable
Merchandise inventory
b) Perusahaan manufaktur, inventories mencakup Finished
goods, Work in process, dan Materials
Current assets:
Cash
Accounts receivable
Merchandise inventory:
Finished goods
Work in process
Materials
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Inventory costing methods mencakup rstin, rst-out
(FIFO); last-in, rst-out (LIFO); and moving average.

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Pada umumnya, perusahaan dagang dan manufaktur
menggunakan berbagai subsidiary ledgers, seperti dalam
accounts receivable and accounts payable.

Perusahaan manufaktur juga menggunakan subsidiary ledgers for

the general ledger inventory control accounts: Finished Goods;
Work in Process; and Materials. subsidiary ledgers ini berguna
untuk menelusuri raw materials secara individu, jobs in process,
dan nished jobs on hand.

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D. Elemen Manufacturing Cost.
Manufacturing or production costs diklasifikasikan kedalam
elemen: (1) direct materials, (2) direct labor, and (3) factory
overhead.
1) Direct Materials
Direct Materials adalah materials yang menjadi bagian dari produk
manufaktur. Misalnya kayu untuk produk mebel, kain untuk
pakaian, kulit untuk sepatu dan sebagainya.
2) Direct Labor
Direct labor adalah tenaga kerja yang bekerja secara
langsung dengan produk yang diproduksi seperti
machine operators atau assembly-line workers
3) Factory Overhead
Factory overhead atau manufacturing overhead and factory
burden adalah costs yang berkaitan dengan biaya 19
produksi/manufaktur selain direct materials and direct labor.
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Marketing expenses, general administrative costs, and other
nonfactory expenditures tidak dimasukkan kedalam costs of
manufacturing.

Beberpa costs dimasukkan oleh pabrikan mungkin

memberikan manfaat kepada operasi produksi dan non
produksi. Costs ini mencakup depreciation, insurance, and
property taxes untuk gedung (building) yang digunakan oleh
the factory and the administrative ofces.

Dalam kondisi ini, maka allocation of cost harus dilakukan

terhadap setiap fungsional/departemen.

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Ketiga unsur manufacturing cost mengalir kedalam rekening work
in process inventory. Aliran biaya dapat dijelaskan sebagai
barikut:

a) The costs of direct materials and direct labor used in

production are charged (debited) directly to Work in Process.
b) All other factory costsindirect labor, indirect materials, and
other factory expensesare charged to the factory overhead
account and later transferred to Work in Process.

Ketika produk jadi selesai diproduksi, maka total costs

dipindahkan dari Work in Process ke Finished Goods.

Ketika produk jadi berhasil dijual, maka total costs untuk

memproduksi produk yang terjual dipindahkan dari Finished
Goods ke Cost of Goods Sold.

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E.Ilustrasi Akuntansi untuk Manufacturing
Cost.
Wicker Works, Inc., adalah perusahaan kecil yang
memproduksi wicker furniture yakni tables and chairs.
Perusahaan menjual produknya ke pengecer. Proses
produksi perusahaan digambarkan seperti berikut ini.

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Posisi balance sheet perusahaan pada January 1 2012 disajikan sebagai
berikut:
Wicker Works, Inc. Balance Sheet January 1, 2011
Cash $ 40,000 Liabilities $ 0
Building 250,000 Capital stock 365,000
Machinery and 75,000
equipment
Total assets 365,000 Total liabilities 365,000
and
stockholders
equity

Asumsi: perusahaan hanya memproduksi 1 produk yakni meja saja.

Transaksi selama bulan Januari 2012 sebagai berikut:
1) Pembelian materials (rattan, binding cane, nails, tacks, staples, glue,
and solvents) senilai $25,000 secara kredit.
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
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2) Selama bulan Januari, perusahaan menggunakan direct materials
(rattan and binding cane) costing $20,000 and indirect materials (nails,
tacks, staples, glue, and solvents for cleaning) costing $995 untuk
produksi.
Work in Process (Direct Materials) .. . . . . . . . . . . . . . . . 20,000
Factory Overhead (Indirect Materials) ................................ 995
Materials .......................................................................................... 20,995
3. Total upah dan gaji untuk bulan Januari terdiri dari:
Factory employees working on the product, $10,000;
Factory supervision, maintenance, and custodial employees,
$3,500; and
Sales and administrative employees, $6,500.

Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Wages Payable . . . . . . . . . . . . . . . . . . . . . 20,000
Cash . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 20,000

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4)Pendistribusian the payroll to the appropriate accounts sebagai
berikut:
Work in Process (Direct Labor) . . . ....................... 10,000
Factory Overhead (Indirect Labor) .......................... 3,500
Selling and Administrative Expenses (Salaries)....... 6,500
Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 20,000
5) Depreciation expense untuk building adalah 6% dari building cost per
year dimana untuk the sales and administrative ofces occupy one-tenth
of the total building, and the factory operation is contained in the other
nine-tenths, sehingga alokasi Depreciation expense sebagai berikut:

Depreciation expense = 0.06 * $250,000 = $15,000 dengan alokasi:

the sales and administrative ofces= 1/10 * $15,000 = $1,500 per tahun
= $1,500/12=$125 per bulan
the factory operation = 9/10 * $15,000 = $13,500 per tahun =
$13,500/12=$1,125 per bulan
Factory Overhead (Depreciation of Building) ............................... 1,125
Selling and Administrative Expenses (Depreciation of Building) . 125
Accumulated DepreciationBuilding . . . . . . . . .. . . . . . . . . . . . .. . 1,250
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6)Depreciation expense for the $75,000 of factory machinery and
equipment is 20% of original cost per year.
Depreciation expense = $75,000 * 0.2 * 1/12 = $1,250

Factory Overhead (Depreciation of Machinery and Equipment). . 1,250

Accumulated DepreciationMachinery and Equipment . . .. . . . . . 1,250

7)The cost of heat, light, and power for the month was $1,500.
Factory Overhead (Utilities) . . ....................................... 1,350
Selling and Administrative Expenses (Utilities) . . . . . . 150*)
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500

8)Miscellaneous selling and administrative expenses for telephone and

fax, copying charges, ofce supplies, travel, and rental of ofce furniture
and equipment totaled $3,750, on account.
Selling and Administrative Expenses . . . . . .................... 3,750
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,750

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Factory Overhead memiliki komponen costs sebagai berikut:
Transaction Discription Amount
Number
2 Indirect Materials $ 995
4 Indirect Labor 3,500
5 Depreciation of Building 1,125
6 Depreciation of Machinery and 1,250
Equipment
7 Utilities 1,350
Total $8,220
9)Saldo Factory Overhead ditransfer ke Work in Process
Work in Process ................................................ 8,220
Factory Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,220

Komponen manufacturing costdirect materials, direct labor, and

factory overhead diakumulasikan di Work in Process.
Transaction Discription Amount
Number
2 Direct Materials $ 20,000
4 Direct Labor 10,000
9 Factory overhead $8,220
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Total $ 38,220
10)Dengan asumsi semua work in process menjadi finished
goods, maka the cost of these goods from Work in Process to
Finished Goods.

Finished Goods ........................................ 38,220

Work in Process .......................................................... 38,220

Jika selama bulan Januari, perusahaan memproduksi 500 meja,

maka unit cost meja tersebut adalah:

,
Unit cost meja =

= $$76.44/meja

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 Discription Total Unit produced unit cost
Direct Materials $20,000 500 $ 40.00
Direct Labor 10,000 500 20.00
Factory overhead 8,220 500 16.44
$38,220 $76.44

Unit cost digunakan sebagai dasar untuk menentukan selling

price meja. Jika perusahaan menetapkan 50% mark-on
percentage (untuk menutup the selling and administrative
expenses dan memperoleh reasonable prot), maka selling
pricenya adalah:

Selling price = 1.5 * $76.44 = $114.66/meja.

Salah satu fungsi cost accounting adalah menetapkan the
cost of manufacturing a unit of product secara akurat untuk
membantu manajemen dalam merencanakan dan
mengendalikan operasi serta membuat marketing decisions.
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11)Perusahaan melunasi hutang materials $25,000
Accounts Payable . . ............................................. 25,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 25,000

12)Perusahaan menjual 400 meja ke pengecer dengan net price of $114.66

Accounts Receivable (400 $114.66) . .............. 45,864
Sales ....................................................................................... 45,864

Cost of Goods Sold (400 $76.44) ..................... 30,576

Finished Goods . . .................................................................... 30,576

13)Perusahaan menerima pelunasan piutang $33,

Cash . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 33,000
Accounts Receivable . . . . . . .................................................... 33,000

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F. Cost Accounting System.
Fungsi cost accounting:
The determination of product costsboth total costs for the
period and unit cost. Cost diakumulasikan untuk setiap periode
tertentu misalnya bulanan atau per tiga bulanan. Kemudian
pada akhir periode, the total costs dibagi dengan unit yang
diproduksi untuk memperoleh cost per unit.
Cost control. Jika pada bulan Februari the cost of direct labor
meningkat dari $20 menjadi $22 per unit. Masalahnya adalah
apakah kenaikan cost of direct labor disebabkan oleh kenaikan
general cost of direct labor atau worker inefciency. Apakah
kenaikan cost of direct labor terjadi diseluruh manufacturing
process atau hanya a particular department or job.

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Penyedian data bagi manajemen untuk kepentingan effective cost
control, maka ada 2 jenis cost accounting systems have been
developed:

the process cost system and

the job order cost system.

Kedua cost accounting systems ini mengumpulkan cost data dan

mengalokasikan costs to goods manufactured.
Untuk menentukan metode yang tepat bagi suatu perusahaan,
maka manufacturing operations dikelompokkan menjadi: special
order and continuous or mass production.

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1) Special Order
Dalam Job order cost system, outputnya adalah
special or custom-made products (each product is
made to order). Contoh perusahaan pembuat kapal
laut atau pesawat, pabrik baja structural dan
sebagainya.

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2)Continuous or Mass Production
Jenis operasi ini menghasilkan produk yang homogeny
seperti Toyota Prius automobile untuk produk tunggal,
atau Pepsi, Diet Pepsi, and Pepsi One soft drinks yang
merupakan produk yang bervariasi.

Process cost system, outputnya adalah homogeneous

product. Wicker Works utilized a process cost system in
the preceding example to account for its only product, a
single style of table.

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3) Combination of Systems
Banyak perusahaan menerapkan a job order cost and a
process cost system. Misalnya suatu perusahaan mebel kayu
ulin memproduksi satu set meja kursi, tapi perusahaan juga
menerima pesanan dari konsumen.

The job order and process cost accounting systems

merupakan pokok yang digunakan dalam manufacturing
organizations. Sistem ini menyediakan cost data untuk cost
control dengan keterbatasannya. Meskipun system ini
memungkinkan untuk menentukan what a product actually
costs, tapi system ini tidak memiliki alat untuk menentukan
what the product should have cost.

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A standard cost system merupakan cost system yang
digunakan baik job order or a process cost system. A
standard cost system ini menggunakan predetermined
standard costs untuk membantu manajemen dalam make
decisions regarding the efciency of operations.

Standard costs are costs that would be incurred under

efcient operating conditions and are forecast before the
manufacturing process begins. During operations, an
organization compares the actual costs incurred with these
predetermined standard costs. Variances, or differences,
are then calculated. These variances reveal which
performances deviate from the standard, and thus they
provide a basis on which management can take appropriate
action to eliminate inefcient operating conditions.

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G.Ilustrasi Job order Cost System.
Dengan a job order cost system, costs diakumulasikan berdasarkan
job/pekerjaan/order. Manfaat job order cost system:
Determine its selling price for each order
A job with a set price, the prot or loss on the job can be readily
determined by comparing the cost with the contract price.
Assist management in preparing bids for similar jobs in the future

Contoh.
Wicker Works, Inc. memproduksi tables and chairs dan menerima 2
pesanan untuk bulan Februari.
a) From Strictly Wicker: to manufacture 500 chairs to their
specications; contract price, $36,000. Job No. 101 is assigned to this
order.
b) From Patio Providers: to manufacture 500 tables to their
specications; contract price, $59,300. Job No. 102 is assigned to this
order.

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Transaksi selama bulan Februari untuk memenuhi
pesanan tersebut sebagai berikut:
1) Indirect materials with a cost of $5,250 are issued to
the factory, and direct materials are issued as
follows:
Job 101 Job 102
Rattan $ 8,200 $16,000
Binding Cane 4,000 2,000
$ 12,200 $18,000

Work in Process (Jobs 101 and 102) ...................... 30,200

Factory Overhead (Indirect Materials) . . . . . . . . . . . . 5,250
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,450

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2) Indirect labor costs of $4,360 and direct labor costs are
incurred as f ollows:
Job 101 Job 102
Direct Labor $ 6,000 $7,500

Work in Process (Jobs 101 and 102) ...................... 13,500

Factory Overhead (Indirect Labor) . . . . . . . . . .......... 4,360
Payroll
............................................................................................. 17,860
3) Monthly depreciation expense for the building, allocated according to the
square footage used by manufacturing (90%) and selling and administrative
(10%), is recorded as follows:
Factory Overhead (Depreciation of Building) . ............................... 1,125
Selling and Administrative Expenses (Depreciation of Building) . . . 125
Accumulated DepreciationBuilding . . . . . . . . . . .. . . . . . . . . . . . . . . . 1,250
4) The entry to record monthly depreciation for machinery and equipment, all of
which is used for manufacturing operations, is recorded as follows:
Factory Overhead (Depreciation of Machinery and Equipment) . . . . 1,250
Accumulated DepreciationMachinery and Equipment . . . . . . . 1,250
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5) The cost of utilities for the month of February is $1,300, again
allocated by building square footage, recorded as follows:
Factory Overhead (Utilities) . . . . . . . . ............................. 1,170
Selling and Administrative Expenses (Utilities) . . . ......... 130
Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300

6)Total charges to Factory Overhead for the month are shown as follows
Factory Overhead
Indirect materials $ 5,250
Indirect labor 4,360
Depreciation of building 1,125
Depreciation of machinery and 1,250
equipment
Utilities 1,170
$13,155

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Assume that Jobs 101 and 102 are the only jobs worked on
during the period and that factory overhead is allocated as
follows: 40% to Job 101, 60% to Job 102.

Job 101 Job 102

Factory Overhead $5,262 $ 7,893

Work in Process (Jobs 101 and 102) . . . . . ............. 13,155

Factory Overhead . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 13,155

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7) Assuming that both jobs were completed by the end of the
month, the costs of the completed jobs would be transferred to
the nished goods inventory control account:
Finished Goods . ................................................ 56,855
Work in Process ................................................................. 56,855

8) When the goods are shipped and billed to the customers, the
following entries are made to record the sale and the cost of
the jobs:

Accounts Receivable . . . . . . . . . . . . . . 95,300

Sales ............................................................................ 95,300
Cost of Goods Sold .............................. 56,855
Finished Goods . . . ....................................................... 56,855

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Work in Process in the Manufacturing Statement
If there is work in process at the beginning and at the end of the month, it
will be shown in the statement of cost of goods manufactured. To
illustrate, assume that Wicker Works, Inc.s statement for June is as
follows:

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SOAL.
I.

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During the month of October, the following transactions took place:
a) Raw materials at a cost of $50,000 and general factory supplies costing
$8,000 were purchased on account. (Materials and supplies are recorded in
the materials account.)
b) materials to be used in production costing $41,000 and miscellaneous factory
supplies costing $5,500 were issued.
c) Wages and salaries incurred and paid for the month were as follows: factory
wages (including $2,500 indirect labor), $34,000, and selling and
administrative salaries, $5,000. (Ignore payroll withholdings and deductions.)
d) Distributed the payroll in (c).
e) Depreciation was recorded for the month at an annual rate of 5% on the
building and 20% on the factory equipment and ofce equipment. The sales
and administrative staff uses approximately one-fth of the building for its
ofces.
f) During the month, various other expenses totaling $5,200 were incurred on
account. The company has determined that one-fourth of this amount is
allocable to the ofce function.
g) Total factory overhead costs were transferred to Work in Process.
h) During the month, goods with a total cost of $79,000 were completed and
transferred to the nished goods storeroom.
i) Sales for the month totaled $128,000 for goods costing $87,000 to manufacture.
(Assume that all sales were made on account.)
j) Accounts receivable in the amount of $105,000 were collected.
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k) Accounts payable totaling $55,000 were paid.
Required:
1. Prepare journal entries to record the transactions.
2. Set up T-accounts for all accounts listed in the September 30, 2011,
Post-Closing Trial Balance and for Cost of Goods Sold, Factory
Overhead, Selling and Administrative Expenses, Sales, and Wages
Payable. Post the beginning trial balance and the journal entries
prepared in Part 1 to the accounts and calculate the balances in the
accounts on October 31.
3. Prepare a statement of cost of goods manufactured, an income
statement, and a balance sheet.

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II. Job Cost; Journal Entries; Inventory Analysis; Manufacturing
Statement
Mesa Manufacturing Co. manufactures engines that are made only on
customers orders and to their specications. During January, the
company worked on Jobs 2525, 2526, 2527, and 2528. The following
gures summarize the cost records for the month

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Jobs 2525 and 2526 have been completed and delivered to
the customers at a total selling price of $852,000, on account.
Job 2527 is nished but has not yet been delivered. Job 2528
is still in process. There was no work in process at the
beginning of the month.
Required:
1. Prepare the summary journal entries for the month to
record the distrib ution of materials, labor, and overhead
costs.
2. Prepare a summary showing the total cost of each job
completed during the month or in process at the end of the
month. Also, determine the cost of the inventories of
completed engines and engines in process at the end of
the month.
3. Prepare the journal entries to record the completion of the
jobs and the sale of the jobs.
4. Prepare a statement of cost of goods manufactured.
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