Partially Calculated Shipment Documents With Multiple Deliveries

Dear Experts Need help for a shipment cost issue. I have created a sales order with two line item. Then created two separated delivery for each line item. After that created a shipment and added both deliveries into that shipment and when I am creating the shipment cost document, it says Partially calculated. BAA status. But when I created the two shipment documents for each delivery and then created the shipment cost document, it's successful. Please advise why I am getting the issue when my shipments have multiple delivery. Is there something missing in customization?

User: Gautam sharma

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2920955 - Why the overall shipment cost calculation status (VTTK-FBGST) remains 'B' in the shipment?

A shipment document is being created which is relevant for shipment cost processing however after a successful shipment cost document creation and processing, the overall shipment cost calculation status in the shipment remains 'B'.

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  • 5.5 Prepare Journal Entries for a Process Costing System
  • Why It Matters
  • 1.1 Define Managerial Accounting and Identify the Three Primary Responsibilities of Management
  • 1.2 Distinguish between Financial and Managerial Accounting
  • 1.3 Explain the Primary Roles and Skills Required of Managerial Accountants
  • 1.4 Describe the Role of the Institute of Management Accountants and the Use of Ethical Standards
  • 1.5 Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting
  • Multiple Choice
  • Exercise Set A
  • Exercise Set B
  • Thought Provokers
  • 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations
  • 2.2 Identify and Apply Basic Cost Behavior Patterns
  • 2.3 Estimate a Variable and Fixed Cost Equation and Predict Future Costs
  • Problem Set A
  • Problem Set B
  • 3.1 Explain Contribution Margin and Calculate Contribution Margin per Unit, Contribution Margin Ratio, and Total Contribution Margin
  • 3.2 Calculate a Break-Even Point in Units and Dollars
  • 3.3 Perform Break-Even Sensitivity Analysis for a Single Product Under Changing Business Situations
  • 3.4 Perform Break-Even Sensitivity Analysis for a Multi-Product Environment Under Changing Business Situations
  • 3.5 Calculate and Interpret a Company’s Margin of Safety and Operating Leverage
  • 4.1 Distinguish between Job Order Costing and Process Costing
  • 4.2 Describe and Identify the Three Major Components of Product Costs under Job Order Costing
  • 4.3 Use the Job Order Costing Method to Trace the Flow of Product Costs through the Inventory Accounts
  • 4.4 Compute a Predetermined Overhead Rate and Apply Overhead to Production
  • 4.5 Compute the Cost of a Job Using Job Order Costing
  • 4.6 Determine and Dispose of Underapplied or Overapplied Overhead
  • 4.7 Prepare Journal Entries for a Job Order Cost System
  • 4.8 Explain How a Job Order Cost System Applies to a Nonmanufacturing Environment
  • 5.1 Compare and Contrast Job Order Costing and Process Costing
  • 5.2 Explain and Identify Conversion Costs
  • 5.3 Explain and Compute Equivalent Units and Total Cost of Production in an Initial Processing Stage
  • 5.4 Explain and Compute Equivalent Units and Total Cost of Production in a Subsequent Processing Stage
  • 6.1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method
  • 6.2 Describe and Identify Cost Drivers
  • 6.3 Calculate Activity-Based Product Costs
  • 6.4 Compare and Contrast Traditional and Activity-Based Costing Systems
  • 6.5 Compare and Contrast Variable and Absorption Costing
  • 7.1 Describe How and Why Managers Use Budgets
  • 7.2 Prepare Operating Budgets
  • 7.3 Prepare Financial Budgets
  • 7.4 Prepare Flexible Budgets
  • 7.5 Explain How Budgets Are Used to Evaluate Goals
  • 8.1 Explain How and Why a Standard Cost Is Developed
  • 8.2 Compute and Evaluate Materials Variances
  • 8.3 Compute and Evaluate Labor Variances
  • 8.4 Compute and Evaluate Overhead Variances
  • 8.5 Describe How Companies Use Variance Analysis
  • 9.1 Differentiate between Centralized and Decentralized Management
  • 9.2 Describe How Decision-Making Differs between Centralized and Decentralized Environments
  • 9.3 Describe the Types of Responsibility Centers
  • 9.4 Describe the Effects of Various Decisions on Performance Evaluation of Responsibility Centers
  • 10.1 Identify Relevant Information for Decision-Making
  • 10.2 Evaluate and Determine Whether to Accept or Reject a Special Order
  • 10.3 Evaluate and Determine Whether to Make or Buy a Component
  • 10.4 Evaluate and Determine Whether to Keep or Discontinue a Segment or Product
  • 10.5 Evaluate and Determine Whether to Sell or Process Further
  • 10.6 Evaluate and Determine How to Make Decisions When Resources Are Constrained
  • 11.1 Describe Capital Investment Decisions and How They Are Applied
  • 11.2 Evaluate the Payback and Accounting Rate of Return in Capital Investment Decisions
  • 11.3 Explain the Time Value of Money and Calculate Present and Future Values of Lump Sums and Annuities
  • 11.4 Use Discounted Cash Flow Models to Make Capital Investment Decisions
  • 11.5 Compare and Contrast Non-Time Value-Based Methods and Time Value-Based Methods in Capital Investment Decisions
  • 12.1 Explain the Importance of Performance Measurement
  • 12.2 Identify the Characteristics of an Effective Performance Measure
  • 12.3 Evaluate an Operating Segment or a Project Using Return on Investment, Residual Income, and Economic Value Added
  • 12.4 Describe the Balanced Scorecard and Explain How It Is Used
  • 13.1 Describe Sustainability and the Way It Creates Business Value
  • 13.2 Identify User Needs for Information
  • 13.3 Discuss Examples of Major Sustainability Initiatives
  • 13.4 Future Issues in Sustainability
  • A | Financial Statement Analysis
  • B | Time Value of Money
  • C | Suggested Resources

Calculating the costs associated with the various processes within a process costing system is only a part of the accounting process. Journal entries are used to record and report the financial information relating to the transactions. The example that follows illustrates how the journal entries reflect the process costing system by recording the flow of goods and costs through the process costing environment.

Purchased Materials for Multiple Departments

Each department within Rock City Percussion has a separate work in process inventory account. Raw materials totaling $33,500 were ordered prior to being requisitioned by each department: $25,000 for the shaping department and $8,500 for the packaging department. The July 1 journal entry to record the purchases on account is:

Direct Materials Requisitioned by the Shaping and Packaging Departments and Indirect Material Used

During July, the shaping department requisitioned $10,179 in direct material. Similar to job order costing, indirect material costs are accumulated in the manufacturing overhead account. The overhead costs are applied to each department based on a predetermined overhead rate. In the example, assume that there was an indirect material cost for water of $400 in July that will be recorded as manufacturing overhead. The journal entry to record the requisition and usage of direct materials and overhead is:

During July, the packaging department requisitioned $2,000 in direct material and overhead costs for indirect material totaled $300 for the month of July. The journal entry to record the requisition and usage of materials is:

Direct Labor Paid by All Production Departments

During July, the shaping department incurred $15,000 in direct labor costs and $600 in indirect labor. The journal entry to record the labor costs is:

During July, the packaging department incurred $13,000 of direct labor costs and indirect labor of $1,000. The journal entry to record the labor costs is:

Applied Manufacturing Overhead to All Production Departments

Manufacturing overhead includes indirect material, indirect labor, and other types of manufacturing overhead. It is difficult, if not impossible, to trace manufacturing overhead to a specific product, and yet, the total cost per unit needs to include overhead in order to make management decisions.

Overhead costs are accumulated in a manufacturing overhead account and applied to each department on the basis of a predetermined overhead rate. Properly allocating overhead to each department depends on finding an activity that provides a fair basis for the allocation. It needs to be an activity common to each department and influential in driving the cost of manufacturing overhead. In traditional costing systems, the most common activities used are machine hours, direct labor in dollars, or direct labor in hours. If the number of machine hours can be related to the manufacturing overhead, the overhead can be applied to each department based on the machine hours. The formula for overhead allocation is:

Rock City Percussion determined that machine hours is the appropriate base to use when allocating overhead. The estimated annual overhead cost is $340,000 per year. It was also estimated that the total machine hours will be 34,000 hours, so the allocation rate is computed as:

The shaping department used 700 machine hours, and with an overhead application rate of $10 per direct labor hour, the journal entry to record the overhead allocation is:

The finishing department used 910 machine hours, and with an overhead application rate of $10 per direct labor hour, the journal entry to record the overhead allocation is:

Transferred Costs of Finished Goods from the Shaping Department to the Packaging Department

When the units are transferred from the shaping department to the packaging department, they are transferred at $3.97 per unit, as calculated previously. The amount transferred from the shaping department is the same amount listed on the production cost report in Figure 5.6 . The journal entry is:

Transferred Goods from the Packaging Department to Finished Goods

The computation of inventory for the packaging department is shown in Figure 5.7 .

The value of the inventory transferred to finished goods in the production cost report is the same as in the journal entry:

Recording the Cost of Goods Sold Out of the Finished Goods Inventory

Each unit is a package of two drumsticks that cost $8.40 to make and sells for $24.99. There are two transactions when recording a sale. One entry is to transfer the inventory from finished goods inventory to cost of goods sold and is at the cost of the product. The second transaction is to record the sale at the sales price. The compound entry to record both transactions for the sale of 500 units on account is:

Link to Learning

The importance of properly recording the production process is illustrated in this report on work in process inventory from InventoryOps.com.

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Access for free at https://openstax.org/books/principles-managerial-accounting/pages/1-why-it-matters
  • Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper
  • Publisher/website: OpenStax
  • Book title: Principles of Accounting, Volume 2: Managerial Accounting
  • Publication date: Feb 14, 2019
  • Location: Houston, Texas
  • Book URL: https://openstax.org/books/principles-managerial-accounting/pages/1-why-it-matters
  • Section URL: https://openstax.org/books/principles-managerial-accounting/pages/5-5-prepare-journal-entries-for-a-process-costing-system

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4.7: Prepare Journal Entries for a Job Order Cost System

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Although you have seen the job order costing system using both T-accounts and job cost sheets, it is necessary to understand how these transactions are recorded in the company’s general ledger.

Journal Entries to Move Direct Materials, Direct Labor, and Overhead into Work in Process

Dinosaur Vinyl keeps track of its inventory and orders additional inventory to have on hand when the production department requests it. This inventory is not associated with any particular job, and the purchases stay in raw materials inventory until assigned to a specific job. For example, Dinosaur Vinyl purchased an additional \(\$10,000\) of vinyl and \(\$500\) of black ink to complete Macs & Cheese’s billboard. If the purchase is made on account, the entry is as shown:

A journal entry lists Raw Materials Inventory: Vinyl with a debit of 10,000, Raw Material Inventory: Black ink with a debit of 500, Accounts Payable with a credit of 10,500, and the note “To record purchase of vinyl and ink inventory”.

As shown in Figure 4.5.2 , for the production process for job MAC001, the job supervisor submitted a materials requisition form for \(\$300\) in vinyl, \(\$100\) in black ink, \(\$60\) in red ink, and \(\$60\) in gold ink. For the finishing process for Job MAC001, \(\$120\) in grommets and \(\$60\) in finishing wood were requisitioned. The entry to reflect these actions is:

A journal entry lists Work in Process Inventory with a debit of 700, Raw Materials Inventory: Vinyl with a credit of 300, Raw Materials Inventory: Black ink with a credit of 100, Raw Materials Inventory: Red ink with a credit of 60, Raw Materials Inventory: Gold ink with a credit of 60, Raw Materials Inventory: Grommets with a credit of 120, Raw Materials Inventory: Finishing wood with a credit of 60, and the note “To record requisition of vinyl and ink inventory”.

The production department employees work on the sign and send it over to the finishing/assembly department when they have completed their portion of the job.

The direct cost of factory labor includes the direct wages paid to the employees and all other payroll costs associated with that labor. Typically, this includes wages and the payroll taxes and fringe benefits directly tied to those wages. The accounting system needs to keep track of the labor and the other related expenses assigned to a particular job. These records are typically kept in a time ticket submitted by employees daily.

On April 10, the labor time sheet totaling \(\$30\) is recorded for Job MAC001 through this entry:

A journal entry lists Work in Process Inventory (MAC001) with a debit of 30, Factory Wages Payable with a credit of 30, and the note “To record labor for Job MAC001”.

The assembly personnel in the finishing/assembly department complete Job MAC001 in two hours. The labor is recorded as shown:

A journal entry lists Work in Process Inventory with a debit of 36, Factory Wages Payable with a credit of 36, and the note “To record labor for Job MAC001”.

Indirect materials also have a materials requisition form, but the costs are recorded differently. They are first transferred into manufacturing overhead and then allocated to work in process. The entry to record the indirect material is to debit manufacturing overhead and credit raw materials inventory.

Indirect labor records are also maintained through time tickets, although such work is not directly traceable to a specific job. The difference between direct labor and indirect labor is that the indirect labor records the debit to manufacturing overhead while the credit is to factory wages payable.

Dinosaur Vinyl’s time tickets indicate that \(\$4,000\) in indirect labor costs were incurred during the period. The entry is:

A journal entry lists Manufacturing Overhead with a debit of 4,000, Factory wages payable with a credit of 4,000, and the note “To record indirect labor for WIP inventories”.

Dinosaur Vinyl also records the actual overhead incurred. As shown in Figure 4.4.3 , manufacturing overhead costs of \(\$21,000\) were incurred. The entry to record these expenses increases the amount of overhead in the manufacturing overhead account. The entry is:

A journal entry lists Manufacturing Overhead with a debit of 21,000, and the following accounts with credits: Supplies Inventory 1,500; Utilities Payable 7,000; Accumulated Depreciation 7,500; Prepaid Insurance 2,917; Interest Payable 2,083. The entry note reads “To record April’s overhead expenses”.

The amount of overhead applied to Job MAC001 is \(\$165\). The process of determining the manufacturing overhead calculation rate was explained and demonstrated in Accounting for Manufacturing Overhead . The journal entry to record the manufacturing overhead for Job MAC001 is:

A journal entry lists Work in Process Inventory with a debit of 165, Manufacturing Overhead with a credit of 165, and the note “To apply overhead to Job MAC001”.

Journal Entry to Move Work in Process Costs into Finished Goods

When each job and job order cost sheet have been completed, an entry is made to transfer the total cost from the work in process inventory to the finished goods inventory. The total cost of the product for Job MAC001 is \(\$931\) and the entry is:

A journal entry lists Finished Goods Inventory with a debit of 931, Work in Process inventory with a credit of 931, and the note “To recognize completion of Job MAC001”.

Journal Entries to Move Finished Goods into Cost of Goods Sold

When the sale has occurred, the goods are transferred to the buyer. The product is transferred from the finished goods inventory to cost of goods sold. A corresponding entry is also made to record the sale. The sign for Job MAC001 had a sales price of \(\$2,000\) and a cost of \(\$931\). These are the entries to record the transfer of goods and sale to the buyer:

A journal entry reads Cost of Goods Sold with a debit of 931, Finished Goods Inventory with a credit of 931, and the note “To recognize sale of Job MAC001”. A second journal entry reads Accounts Receivable with a debit of 2,000, Sales with a credit of 2,000, and the note “To recognize sale of Job MAC001”..

The resulting accounting is shown on the company’s income statement:

The Income Statement including the headings: DINOSAUR VINYL, INC., Income Statement. Sales are listed as $2,000, Cost of Goods Sold of 931 are subtracted to get Gross Profit of $1,069.

Think It Through: Ongoing Overapplied Overhead

At the end of each year, manufacturing overhead is analyzed, and an adjusting entry is made to dispose of the under- or overapplied overhead. How would you advise a company that has had overapplied overhead for each of the last five years?

Contributors and Attributions

  • Template:ContribManagerialAccountingOpenStax

Cost Allocation To Completed Units And Units In Process

  • Chapter 20: Process Costing and Activity-Based Costing
  • Goals Achievement
  • Fill in the Blanks
  • Multiple Choice

The cost per equivalent unit calculations are used to allocate cost incurred between a department’s completed production and the units in ending work in process. Carefully examine the following schedule to see that the cost assigned to completed units totals $8,027,500. The ending work in process is $1,460,000, determined as 125,000 equivalent units at $9.00 each, plus 100,000 equivalent units of conversion at $3.35 each.

Cost Allocation  and Units in Process Schedule

Note that a check mark is placed beside the total cost allocation ($9,487,500 = $8,027,500 + $1,460,000) as a reminder that this schedule must allocate the entire cost incurred within the Melting Department.

Cost Of Production Report

The preceding schedules are combined into a single cost of production report as shown below. A similar report would be prepared for each department.

These reports are used for many management purposes, such as inventory control, efficiency studies, incentive pay plans, and the like. They also provide the basis for the following entries that are needed to update the ledger accounts for the inventory cost allocations.

Cost of Production Ledger Accounts

Analysis of Cost Flow

The journal entries, along with the beginning work in process of $2,122,500, result in an ending work in process of $1,460,000.

The following T-account portrays the cost flow through the Work in Process account of the Melting Department:

Work in Process T Account

Added Processes

It is important to notice that the journal entry to transfer $8,027,500 out of the Melting Department (credit) is offset with an increase in the Work in Process of the Skim/Alloy Department (debit).

The Skim/Alloy Department’s T-account for June might look something like this (amounts are assumed):

Work in Process Skim Department T Account

The corresponding journal entries for the Skim/Alloy Department for June are as follows:

Skim/Alloy Department Journal Entries

Assume the Mold/Extrude Department has the following T-account and related entries.

Work in Process Mold/Extrude Department T Accounts

The costs transferred from the Mold/Extrude unit go to the finished goods inventory since this is the final process.

Mold/Extrude Department Journal Entries

As noted within the journal entry descriptions, all costs for each department were assumed. But, overhead is not in direct proportion to salaries payable for each department. This is not unexpected as there is no requirement that overhead be applied at the same rate, or on the same basis, in different departments.

Overall Review

The schedule below shows that Navarro incurred $19,365,000 in costs and transferred $20,000,000 to finished goods. Total work in process inventory declined by $635,000. This is verified by comparing the beginning and ending work in process balances ($7,622,500 – $6,987,500 = $635,000). Navarro’s balance sheet at June 30 would include $6,987,500 as work in process inventory.

Navarro Schedule

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Managerial Accounting Textbook 2023 Edition

  • Chapter 1: Welcome to the World of Accounting
  • Chapter 2: Information Processing
  • Chapter 3: Income Measurement
  • Chapter 4: The Reporting Cycle
  • Chapter 5: Special Issues for Merchants
  • Chapter 6: Cash and Highly-Liquid Investments
  • Chapter 7: Accounts Receivable
  • Chapter 8: Inventory
  • Chapter 9: Long-Term Investments
  • Chapter 10: Property, Plant, & Equipment
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  • Chapter 17: Introduction to Managerial Accounting
  • Chapter 18: Cost-Volume-Profit and Business Scalability
  • Chapter 19: Job Costing and Modern Cost Management Systems
  • Chapter 21: Budgeting – Planning for Success
  • Chapter 22: Tools for Enterprise Performance Evaluation
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Module 5: Job Order Costing

Introduction to accumulating and assigning costs, what you will learn to do: assign costs to jobs.

Financial and managerial accountants record costs of production in an account called Work in Process. The total of these direct materials, direct labor, and factory overhead costs equal the cost of producing the item.

In order to understand the accounting process, here is a quick review of how financial accountants record transactions:

Let’s take as simple an example as possible. Jackie Ma has decided to make high-end custom skateboards. She starts her business on July 1 by filing the proper forms with the state and then opening a checking account in the name of her new business, MaBoards. She transfers $150,000 from her retirement account into the business account and records it in a journal as follows:

For purposes of this ongoing example, we’ll ignore pennies and dollar signs, and we’ll also ignore selling, general, and administrative costs.

After Jackie writes the journal entry, she posts it to a ledger that currently has only two accounts: Checking Account, and Owner’s Capital.

A journal entry dated July 01 shows a debit of $150,000 to Checking Account and a credit of $150,000 to Owner’s Capital with the note “Owner’s investment - initial deposit to business bank account”. Each line item in the journal entry points to the corresponding debit or credit on its respective t-account.

Debits are entries on the left side of the account, and credits are entries on the right side.

Here is a quick review of debits and credits:

You can view the transcript for “Colin Dodds – Debit Credit Theory (Accounting Rap Song)” here (opens in new window) .

Also, this system of debits and credits is based on the following accounting equation:

Assets = Liabilities + Equity.

  • Assets are resources that the company owns
  • Liabilities are debts
  • Equity is the amount of assets left over after all debts are paid

Let’s look at one more initial transaction before we dive into recording and accumulating direct costs such as materials and labor.

Jackie finds the perfect building for her new business; an old woodworking shop that has most of the equipment she will need. She writes a check from her new business account in the amount of $2,500 for July rent. Because she took managerial accounting in college, she determines this to be an indirect product expense, so she records it as Factory Overhead following a three-step process:

  • Analyze transaction

Because her entire facility is devoted to production, she determines that the rent expense is factory overhead.

2. Journalize transaction using debits and credits

If she is using QuickBooks ® or other accounting software, when she enters the transaction into the system, the software will create the journal entry. In any case, whether she does it by hand or computer, the entry will look much like this:

3. Post to the ledger

Again, her computer software will post the journal entry to the ledger, but we will follow this example using a visual system accountants call T-accounts. The T-account is an abbreviated ledger. Click here to view a more detailed example of a ledger .

Jackie posts her journal entry to the ledger (T-accounts here).

A journal entry dated July 03 shows a debit of $2,500 to Factory Overhead and a credit of $2,500 to Checking Account with the note “Rent on manufacturing facility”. Each line item in the journal entry points to the corresponding debit or credit on its respective t-account.

She now has three accounts: Checking Account, Owner’s Capital, and Factory Overhead, and the company ledger looks like this:

A t-account for Checking Account shows a debit of $150,000 beginning balance, a credit of $2,500 dated July 03, and $147,500 ending debit balance. A t-account for Owner's Capital shows a credit of $150,000 beginning and ending balance. A t-account for Factory Overhead shows a debit of $2,500 dated July 03 beginning balance and a debit of $2,500 ending balance.

In a retail business, rent, salaries, insurance, and other operating costs are categorized into accounts classified as expenses. In a manufacturing business, some costs are classified as product costs while others are classified as period costs (selling, general, and administrative).

We’ll treat factory overhead as an expense for now, which is ultimately a sub-category of Owner’s Equity, so our accounting equation now looks like this:

Assets = Liabilities + Owner’s Equity

147,500 = 150,000 – 2,500

Notice that debits offset credits and vice versa. The balance in the checking account is the original deposit of $150,000, less the check written for $2,500. Once the check clears, if Jackie checks her account online, she’ll see that her ledger balance and the balance the bank reports will be the same.

Here is a summary of the rules of debits and credits:

Assets = increased by a debit, decreased by a credit

Liabilities = increased by a credit, decreased by a debit

Owner’s Equity = increased by a credit, decreased by a debit

Revenues increase owner’s equity, therefore an individual revenue account is increased by a credit, decreased by a debit

Expenses decrease owner’s equity, therefore an individual expense account is increased by a debit, decreased by a credit

Here’s Colin Dodds’s Accounting Rap Song again to help you remember the rules of debits and credits:

Let’s continue to explore job costing now by using this accounting system to assign and accumulate direct and indirect costs for each project.

When you are done with this section, you will be able to:

  • Record direct materials and direct labor for a job
  • Record allocated manufacturing overhead
  • Prepare a job cost record

Learning Activities

The learning activities for this section include the following:

  • Reading: Direct Costs
  • Self Check: Direct Costs
  • Reading: Allocated Overhead
  • Self Check: Allocated Overhead
  • Reading: Subsidiary Ledgers and Records
  • Self Check: Subsidiary Ledgers and Records
  • Introduction to Accumulating and Assigning Costs. Authored by : Joseph Cooke. Provided by : Lumen Learning. License : CC BY: Attribution
  • Colin Dodds - Debit Credit Theory (Accounting Rap Song). Authored by : Mr. Colin Dodds. Located at : https://youtu.be/j71Kmxv7smk . License : All Rights Reserved . License Terms : Standard YouTube License
  • What the General Ledger Can Tell You About Your Business. Authored by : Mary Girsch-Bock. Located at : https://www.fool.com/the-blueprint/general-ledger/ . License : All Rights Reserved . License Terms : Standard YouTube License

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  4. TRADING AND PROFIT & LOSS A/C| FINANCIAL STATEMENT| LECTURE 64 CLASS11TH| BY COMMERCEWALABHAIYA|

  5. COST ACCOUNTING ASSIGNMENT

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COMMENTS

  1. Account assignment incomplete on shipment cost doc

    The user has a workaround where she could force the account assignment complete by removing the sales document, item and order from the account assignment tab for that line item so that the document could be transferred to Finance. She would like to know the financial implications of implementing this workaround? kindly help out.

  2. Partially Calculated Shipment Documents With Multiple Deliveries

    Dear Experts Need help for a shipment cost issue. I have created a sales order with two line item. Then created two separated delivery for each line item. After that created a shipment and added both deliveries into that shipment and when I am creating the shipment cost document, it says Partially calculated. BAA status.

  3. 2920955

    A shipment document is being created which is relevant for shipment cost processing however after a successful shipment cost document creation and processing, the overall shipment cost calculation status in the shipment remains 'B'. SAP Knowledge Base Article - Preview.

  4. Carrying out Account Assignment

    Account assignment for the shipment cost item, that is G/L account determination and assignment for cost accounting can only be carried out if shipment cost calculation has been carried out. Procedure. In the shipment cost document, go to the detail screen of a shipment cost item, for which costing has already been carried out and for which you ...

  5. Solved The following partially completed process cost

    Accounting Accounting questions and answers The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins.

  6. Account assignment incomplete on shipment cost doc

    Sep 30, 2008 at 03:47 PM Account assignment incomplete on shipment cost doc 46 Views Follow RSS Feed Hi, I have an Issue where Account Assignment is Incomplete in a Shipment cost document due to specific line item where the Account assignment has been partially processed.

  7. 5.5 Prepare Journal Entries for a Process Costing System

    The value of the inventory transferred to finished goods in the production cost report is the same as in the journal entry: Recording the Cost of Goods Sold Out of the Finished Goods Inventory. Each unit is a package of two drumsticks that cost $8.40 to make and sells for $24.99. There are two transactions when recording a sale.

  8. Freight Expense

    Some of the factors that affect freight expense include: 1. Fuel costs. Some shipping companies include a fuel cost component in the freight cost pricing model. The cost of road and maritime shipping is dependent on the cost of fuel, and the final cost charged to the consumer must factor in the cost of fuel at the time of shipping.

  9. 4.7: Prepare Journal Entries for a Job Order Cost System

    When each job and job order cost sheet have been completed, an entry is made to transfer the total cost from the work in process inventory to the finished goods inventory. The total cost of the product for Job MAC001 is $931 $ 931 and the entry is: Figure 4.7.8 4.7. 8: WIP inventory to recognize job completion.

  10. Cost Allocation To Completed Units And Units In Process

    Carefully examine the following schedule to see that the cost assigned to completed units totals $8,027,500. The ending work in process is $1,460,000, determined as 125,000 equivalent units at $9.00 each, plus 100,000 equivalent units of conversion at $3.35 each.

  11. Solved The following partially completed process cost

    Business Accounting Accounting questions and answers The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins.

  12. 10) The following partially completed process cost summary

    The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion.

  13. Cost assignment definition

    Cost assignment is the allocation of costs to the activities or objects that triggered the incurrence of the costs. The concept is heavily used in activity-based costing, where overhead costs are traced back to the actions causing the overhead to be incurred. The cost assignment is based on one or more cost drivers.

  14. Introduction to Accumulating and Assigning Costs

    Let's continue to explore job costing now by using this accounting system to assign and accumulate direct and indirect costs for each project. When you are done with this section, you will be able to: Record direct materials and direct labor for a job. Record allocated manufacturing overhead. Prepare a job cost record.

  15. shipment cost accounting assignment partially completed

    2.Assignments for cost accounting. Account Assignment is Incomplete in a Shipment cost document due to specific line item where the Account assignment has been partially processed. The user has a workaround where she could force the account assignment complete in this line item by removing the sales document, item and Service order from the .....

  16. Shipment cost

    Shipment cost 123456 - account assignment not possible. As the Sales orders 12345 Archived due to that System is not allowing to assign the G/L Account to the Shipment cost document. Now the issue is how to assign that shipment cost amount to G/L account : 123456. My Request is that Is there a procedure to suggest the User to Post the shipment ...

  17. Chapter 16 ACCT 1200 Flashcards

    Their ending inventory consisted of 40,000 units which were 80% complete with respect to direct materials and 30% complete with respect to conversion cost. The cost per EUP for direct materials is $4.00 and for conversion is $3.50. The cost of ending work in process inventory is. $170,000.