Accounting › Section R · Job order and process costing › Topic R.9
Process costing journal entries
Production cost reports work out what each department's output cost; journal entries then move those amounts through the ledger. The entries look much like job order entries, with one work in process account per department and transfers between them.
In this topic
- One WIP account per department
- Worked example: buying and issuing materials
- Recording labour
- Actual and applied overhead
- Worked example: transfers between accounts
- Recording sales
- Checking the ledger against the reports
- Process entries versus job order entries
- Common mistakes to avoid
- Key takeaways
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