{"id":35,"date":"2015-06-03T19:11:48","date_gmt":"2015-06-03T19:11:48","guid":{"rendered":"https:\/\/courses.candelalearning.com\/managacct2x10xmaster\/?post_type=chapter&p=35"},"modified":"2015-12-27T15:11:53","modified_gmt":"2015-12-27T15:11:53","slug":"journal-entries-for-the-flow-of-production-costs","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-managacct\/chapter\/journal-entries-for-the-flow-of-production-costs\/","title":{"raw":"3.4 Journal Entries For the Flow of Production Costs","rendered":"3.4 Journal Entries For the Flow of Production Costs"},"content":{"raw":"
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\r\n\r\nThe journal entries for the flow of production costs are the same with process and job costing.\u00a0 The cost flow is as follows:\r\n\r\n\"job<\/a>\r\n\r\nThe corresponding journal entries\u00a0to the letters in the flow chart are:\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Journal Entries by account flow (see referenced letter)<\/strong><\/td>\r\n<\/tr>\r\n
<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
Ref<\/strong><\/td>\r\nAccount \/ Description<\/strong><\/td>\r\nDebit<\/strong><\/td>\r\nCredit<\/strong><\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
a<\/strong><\/td>\r\nRaw Materials Inventory<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
<\/td>\r\n\u00a0\u00a0 Cash or Accounts Payable<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nPurchased raw materials inventory<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
b<\/strong><\/td>\r\nFactory Payroll<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Wages Payable<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord wages earned but unpaid<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
c<\/strong><\/td>\r\nThese are examples of some of the entries you may record:<\/em><\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nManufacturing Overhead<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Accumulated Depreciation<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord depreciation on factory equipment<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nManufacturing Overhead<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Cash<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord factory rent paid with cash<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nManufacturing Overhead<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Accounts Payable<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord factory supplies purchased on credit<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
d<\/strong><\/td>\r\nWork in Process Inventory<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Raw Materials Inventory<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord Direct Materials Used<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
e<\/strong><\/td>\r\nManufacturing Overhead<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Raw Materials Inventory<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord INDIRECT materials used<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
f<\/strong><\/td>\r\nWork in Process Inventory<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Factory Payroll<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord Direct Labor<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
g<\/strong><\/td>\r\nManufacturing Overhead<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Factory Payroll<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord INDIRECT labor<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
h<\/strong><\/td>\r\nWork in Process Inventory<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Manufacturing Overhead<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord Overhead APPLIED to production<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
i<\/strong><\/td>\r\nFinished Goods Inventory<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Work in Process Inventory<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord jobs or goods completed (cost of goods manufactured)<\/em><\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n
j<\/strong><\/td>\r\nCost of goods sold<\/td>\r\nX<\/td>\r\n<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\n\u00a0\u00a0 Finished Goods Inventory<\/td>\r\n<\/td>\r\nX<\/td>\r\n<\/tr>\r\n
\u00a0<\/strong><\/td>\r\nRecord cost of jobs or goods completed AND sold<\/em><\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<\/div>\r\nFor a printable view click job cost flow<\/a>.\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"
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\n

The journal entries for the flow of production costs are the same with process and job costing.\u00a0 The cost flow is as follows:<\/p>\n

\"job<\/a><\/p>\n

The corresponding journal entries\u00a0to the letters in the flow chart are:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Journal Entries by account flow (see referenced letter)<\/strong><\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Ref<\/strong><\/td>\nAccount \/ Description<\/strong><\/td>\nDebit<\/strong><\/td>\nCredit<\/strong><\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
a<\/strong><\/td>\nRaw Materials Inventory<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n\u00a0\u00a0 Cash or Accounts Payable<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nPurchased raw materials inventory<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
b<\/strong><\/td>\nFactory Payroll<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Wages Payable<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord wages earned but unpaid<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
c<\/strong><\/td>\nThese are examples of some of the entries you may record:<\/em><\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nManufacturing Overhead<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Accumulated Depreciation<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord depreciation on factory equipment<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nManufacturing Overhead<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Cash<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord factory rent paid with cash<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nManufacturing Overhead<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Accounts Payable<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord factory supplies purchased on credit<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
d<\/strong><\/td>\nWork in Process Inventory<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Raw Materials Inventory<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord Direct Materials Used<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
e<\/strong><\/td>\nManufacturing Overhead<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Raw Materials Inventory<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord INDIRECT materials used<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
f<\/strong><\/td>\nWork in Process Inventory<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Factory Payroll<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord Direct Labor<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
g<\/strong><\/td>\nManufacturing Overhead<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Factory Payroll<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord INDIRECT labor<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
h<\/strong><\/td>\nWork in Process Inventory<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Manufacturing Overhead<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord Overhead APPLIED to production<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
i<\/strong><\/td>\nFinished Goods Inventory<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Work in Process Inventory<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord jobs or goods completed (cost of goods manufactured)<\/em><\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
j<\/strong><\/td>\nCost of goods sold<\/td>\nX<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\n\u00a0\u00a0 Finished Goods Inventory<\/td>\n<\/td>\nX<\/td>\n<\/tr>\n
\u00a0<\/strong><\/td>\nRecord cost of jobs or goods completed AND sold<\/em><\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

For a printable view click job cost flow<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"author":276,"menu_order":5,"template":"","meta":{"_candela_citation":"[]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-35","chapter","type-chapter","status-publish","hentry"],"part":3,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/35","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/users\/276"}],"version-history":[{"count":5,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/35\/revisions"}],"predecessor-version":[{"id":863,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/35\/revisions\/863"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapters\/35\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/media?parent=35"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/pressbooks\/v2\/chapter-type?post=35"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/contributor?post=35"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-managacct\/wp-json\/wp\/v2\/license?post=35"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}