Accounting 2 – ACCT 122 – Program #228 – Job Order Cost Accounting – Conclusion

It'' s a product cost, but it ' s not MOH? That ' s all. ' Cause something will certainly come up and also after that you'' ll.
you don'' t permit yourself any margin for those things in life that might occur, fine? If you, for every date, on the internet students,.
that you take your examination past the due day, it'' s 15 extra factors off no matter the.
reason.Okay? So don '

t put on your own'in that scenario where.
you have no margin, okay? All right. Let'' s review, I think I assigned some homework.
> > I ' m not getting–. > > No, I can ' t do that. > >'I can ' t do it.
> > It ' s gon na be fine. Someday I ' ll be gone as well as you ' ll go, you recognize. > > It ' s on camera.
Okay. Allow ' s discuss the solutions to these. This is the first, this is A, B, C, and also D. to
Zulu, Inc., okay? A, D, c, and also b to Zulu, Inc. Okay, as well as, as well as uh, journal entrance A, we acquire. Raw materials'supply on credit report? Okay? We appropriation out some materials, alright? Uh

, if it'' s direct materials, we debit work. and procedure inventory.If it ' s indirect materials, we debit manufacturing facility.
Now we wear ' t have actually any type of account called “straight. Make sure you put on ' t do that.
No, that simply suggests we have a raw products. Um, so any kind of questions on those? Now you might ' ve incorporated these 2 right into one.
journal access. If you did that, that'' s great as long
as the. total effect coincides. >>Okay? Luke. > > In as for the products in process as well as the. job in process, I recognize you stated they were the exact same, yet is it uh, is it helpful to define.
them for different things like since we'' re speaking about like various jobs, is it much more.
> > Well, all right, very first of all, your concern. > >. > > Some people call it items in process, and
I'' m not sure I recognized. Can you restate that? >>> > I, I just saw that you were using work.
in procedure extra frequently. >>> > Yeah. It'' s just>>–. > > For phase 19, so I simply didn'' t understand if you were just mixing it up or if it was really.
practical when it concerns work order prices or whatever. >>> > Currently, there ' s no actual reasoning. The factor I think I make use of operate in procedure supply,.
I have a habit of doing that more, is because um, in, in my consulting we always call it.
work in procedure. We constantly chat, speak about the WIP account.Well, allow ' s have a look at the'WIP. Which implies the operate in process, and because,.
' reason sometimes they can attempt to hide expenditures in there that shouldn'' t be in there to bolster.
their bottom line, so we just call it the WIP account therefore I have a propensity in here.
but there'' s no actual difference. There ' s no genuine distinction. Okay? Cool? Good inquiry. All. Right here'' s where we pay payroll. We debit factory payroll, we attribute money,.
after that we go with that 50,000 pay-roll as well as we determine how much of it is direct labor. If it'' s straight labor, it goes to function in procedure.
Okay? Currently this makes a little bit extra sense that.
So.Any questions on A with D? You could'' ve made this into two journal entrances.
Okay? Okay. In uh, E, we pay some overhead things, correct?
above. And again, this is the journal access that'' s. usually missed on the test. This is a past examination question, incidentally. Okay? We debit job in process supply, we.
credit history manufacturing facility expenses. When you debit that job in procedure, think around.
supply account. Whenever you do that, you are writing something.
at work price sheet. Okay? All right, um, let'' s see what ' s next. Oh, when the, when the goods are no
longer. being produced as well as it'' s created, we move it out of the job in process supply and.
right into completed goods supply. Now from one stock possession to one more inventory.
possession. And then when we offer the task, we make these.
2 journal entries. We would certainly anticipate the list prices to be greater.
than the expense, would we not? Okay? As well as this is where those, those the item.
costs that have actually been spending time in inventory accounts, they ultimately relocate from ended up.
products inventory to expense of goods sold.They ultimately move from the balance sheet to. the earnings declaration.
Okay? You with me? All right, any concerns on Zulu? Any type of inquiries on that particular? What I would certainly such as to do now is um, let'' s
see. what I obtained here. I ' d like to deal with a comparable handout. I'' ll placed it on the display here. We'' re gon na spend some time while they play.
that snazzy jazzy JCCC music and also we are mosting likely to service Xavier Inc. journal access. Okay? Once more I assume this is a previous test concern,.
yet you people at house, why wear'' t you uh go in advance and do this with us while they play.
the songs, and uh, after that we'' ll come back and also we ' ll all review it together, okay?
( music) Right here we are. Allow'' s have a look at the answers right here. Okay? Um, allow'' s have a look at A through An and also B. for Xavier'. All? it ' s actually essentially the same thing. I'put on ' t recognize that I said, require say a whole. lot even more regarding it, it ' s simply various numbers and additional method, fix? There'' s the answer to An and B in relates to.
Um, allow'' s go down. Here is some settlement and some real overhead. Here is the application or task of overhead.
and also we use it. Okay? . When the job is total, we relocate it.
Out of work in process supply and into ended up items inventory, as well as after that.
when we offer it, that'' s the insure we make right there. Okay? Okay. Allow'' s have a look at uh,'allow ' s return to. the slides.
I want to take another appearance at just how as well as why. And we have talked regarding this?
Currently if you take a look at the slide that I had, um,. or otherwise the slide yet the image that I had last time, we had this picture. Here, didn ' t we, where I revealed in those journal entrances we were making that indirect. Materials, indirect labor is obtaining debited to factory overhead? When we pay the other manufacturing facility overhead, as well as.
products it'' s getting debited to manufacturing facility overhead.The real overhead is on the debit side of. The FOH account? And afterwards as you saw on Xavier, um, when we. use overhead or assign overhanging, that is when FOH obtains credited, fix? As well as we debit operate in procedure stock. You with me? Okay? Now we ' ll return to that in a min. And I ' ve experienced this slide often times,. but as soon as again, we recognize that if the straight materials
and also direct labors can get straight. traced to the products in procedure or job in procedure, all this manufacturing facility expenses though,. demands to be applied or allocated or designated to it.Okay? At some point all this item cost though, obtain. to this goods in process. Okay? Ultimately it ends up being finished goods,.
and after that eventually it transfers to the revenue statement when it comes sold.
Okay? They give us a couple concerns simply to kind. If we approximate above at $ 200,000, and also we.
price per direct labor hour, which appears to be our allowance base below? Well, we would just
take our approximated overhead,. split by our approximated activity. That would be 200,000 separated by 20,000, uh,. 200,000 divided by 25,000 hours so our established overhead price would certainly be $8 per hour.
Couldn ' t we simply like, couldn ' t we simply such as. Why couldn ' t we do that, as well as after that we wouldn ' t. have to fret concerning not having correct estimates? > > ' Reason we wouldn ' t be uh, representing part.
of the month. > > Well yeah, and, and as it says down here. on >>'the base, Henry', we need to be able to estimate our work expense sooner than at the end. of every year, wear ' t we? Okay? And that doesn ' t make sense.You can ' t wait ' til completion of the year to. understand your prices, okay? Well, someone'could state, “Well

, I ' ve obtained. 'a concept. You ' re right, we
can ' t wait ' til completion of. every year, “but what'if we wait ' til the end of every month and also we 'know specifically what our. estimated manufacture, or we understand specifically what our manufacturing expenses is for that.
Well the problem there is, overhead is not. Okay? Expenses is not incurred uniformly during.
little expenses, right? You can come off that momentarily. And we understand that there ' s a great deal of different. sorts of services where expenses is not taken in and also task is not regular for
. on a monthly basis of the year. Correct? Like believe of a building business.
> > April specifically ' cause you obtained tax obligations, all right? > > You just did, that ' s! ' Cause they ' ll be in institution.
Since those kind of activities are not consistent. throughout'the year, and because we would like to know our costs in advance, we utilize this determined.
overhanging rate uh, and also it ' s computed as we have actually talked about. Okay? Back to the slides.
Currently this lady claims, “The predetermined overhead. Well actually it ' s not, if it ' s gon na be when,
. Okay?
Well, let

' s take an appearance, all right? Let ' s state that, let ' s say that we um, our. It ' d be like an adjusting journal entry at.
the end of'the period to kind of real up factory overhead.Does that make sense? Okay? Well, let ' s check out it, if uh, factory overhead.

was over-applied. Okay? Well, allow'' s claim that we build up whatever.
on the debit side and also we have 102,000 and the quantity that we designated is 103,000.
Okay? Well, is this over-applied or under-applied? This is over-applied, best? What ' s the balance of this account as it rests. right now?$ 1,000 on the credit report side', remedy? If I desire to zero that out, what do I have. to do? I have to debit it, right? And now it has an absolutely no equilibrium.
> > Item sold. > > Expense to products marketed.
What ' s their manufacturing expenses? > > A. > > It is$ 12,000 over-applied. You wear ' t have, you don ' t have a 5 day.
Now remember, this test, I state it ' s over phases. 18 through 20 yet it ' s barely over 20, right? It ' s actually over 18 as well as 19. Okay? And we'spoke about that when we walked'through. the research study guide last period, deal with? Okay. Well. Primary, best of luck on the test. Okay? .However, there is something I want
you to do after you take this following examination but prior to you pertain to the following lecture. Are you with me? Okay? Need to see to it I can get every little thing in
as well as the lecture that we will certainly have that will certainly be number 229, again hereafter third test,
it will flow a lot smoother if you have done this, fine? What I want you to do after you take the
test yet prior to lecture 229, is I desire you to review chapter 20 and after that I have a phase
20 Attach assignment, alright? It'' s not actual challenging, fine? You'' ll see that there ' s a lot of overlap in between
chapter 20 and also phase 19.

In the past, after you take the examination three
but prior to lecture 229, you individuals, you have a job. You generally put on'' t have that after a test,
I desire you to do that Connect project. That is worth factors, alright? Excellent luck on test number three, and we will certainly
see you on uh, on lecture 229. Ensure you bring your calculators to the
lecture. You need to constantly have your calculator, yet
especially ensure you bring '' em on lecture 229 and also do that phase 20 Attach job
> > Go Royals!.

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