The Shawshank Manufacturing Co

question 1

Essay

The Shawshank Manufacturing Co. uses a job order cost system of accounting. The following information was taken from the books of the company after all posting had been completed at the end of January:
a.Prepare the journal entries to allocate the costs of materials, labor, and factory overhead to each job and to transfer the costs of jobs completed to Finished Goods.
b.Compute the total production cost of each job.
c.Compute the unit cost of each job.
d.Compute the selling price per unit for each job, assuming a mark-on percentage of 40 percent.

---

Definitions:

Variety

The quality or state of being different or diverse; the absence of uniformity or monotony.

Materials Productivity

A measure of how efficiently materials are utilized to produce goods and services.

Ratio

A quantitative relationship between two numbers that shows how many times one value is contained within the other.

Operations Management

The administration of business practices aimed at ensuring maximum efficiency within a company, focusing on product and service development, production, and distribution.