1. A partial listing of cost incurred during December at Gwapa Corp. appears below: Factory overhead Direct materials Sales staff salaries P 8,000 153,000 68,000 32,000 83,000 Admin wages and salaries P105,000 Corp. HQ building rental Factory depreciation Indirect labor Direct labor What are the total product costs listed above? Marketing of the products Freight out of products sold 34,000 49,000 103,000 25,000
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Provide step by step solution and answer
![1. A partial listing of cost incurred during December at Gwapa Corp. appears
below:
Factory overhead
Direct materials
Sales staff salaries
P 8,000
153,000
68,000
Admin wages and salaries P105,000
Corp. HQ building rental
Factory depreciation
34,000
49,000
Marketing of the products
103,000
Freight out of products sold
Indirect labor
32,000
Direct labor
83,000
What are the total product costs listed above?
25,000
2. Unconditionally Corporation estimated that the company can sell 200,000
units of a product next period and earn a profit of P350,000 after tax of 30%.
Fixed costs are estimated at P480,000 for the period. Variable costs are
equal to two thirdsof sales revenue. To meet this objective, what price must
be charged for each unit of product?
3. I love you Corp. plans to sell 500,000 units of a product at a price of P19.50
per unit. Fixed costs for the period have been budgeted at P750,000. The
profit after tax has been budgeted at P480,000 with an income tax rate of
40%, In order to meet the above requirements, how much should be the
variable cost per unit?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F152fd672-d4a8-478e-a284-20c08400c0c0%2F55763974-ee2f-4b29-93f6-db30c573c1a3%2Fls9dvdfm_processed.png&w=3840&q=75)
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