The Shawshank Manufacturing Co

question 24

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.

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Definitions:

Customer Refund Payable

A liability account representing the obligation of a business to return money to a customer due to overcharging or returning merchandise.

Accounting Equation

A fundamental financial principle representing the relationship between an entity’s assets, liabilities, and equity; expressed as Assets = Liabilities + Equity.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' share of the company.

Statement

A written record detailing the financial performance or position of a company at a specific point in time.