Example in Allocating and tracing cost





                              Example 1





Additional info.

Job 1 is completed and sold to the customer

Job 2 is completed but not yet sold to the customer

Job 3 & Job 4 are still under processing and not yet a finished good

Required

Prepare the following accounts in general ledger (WIP, F.G, COGS)

The solution:

Hint

All jobs passed through the work in process stage
Only job 1 & 2 reached the point of being a finished good
Only job 1 reached the stage of being finished and sold so we have to go to the point of the cost of goods sold


















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