BC Company Uses a Job Order Cost Accounting System

question 153

Essay

BC Company uses a job order cost accounting system. During the month of April, the following events occurred:
(a) Purchased raw materials on credit, $32,000.
(b) Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials.
(c) Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor.
(d) Assigned the factory payroll to jobs and overhead.
Make the necessary journal entries to record the above transactions and events.

Comprehend the principles of differential analysis and its advantages in decision-making.

Recognize the criteria for measuring objectives in quantitative terms in decision-making.

Distinguish between objectives, constraints, and opportunity costs in conflict resolution during decision-making.

Identify the characteristics of relevant information, including the impact on future costs or revenues and the importance of timeliness.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and possibly rights to dividends, voting, and information.

Corporation's Actions

Decisions or movements made by a corporation, such as dividend distributions, stock splits, or acquisitions, affecting its operations and stakeholders.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares.

Shares Authorized

The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.