2. Delph Company uses a job-order costing system and has two manufacturing departments Molding and Fabrication. The company provided the following estimates at the beginning o: the year: Molding Fabrication Total Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per 20,000 $700,000 30,000 50,000 $210,000 $910,000 $3.00 $1.00 machine-hour During the year, the company had no beginning or ending inventories and it started completed, and sold only two jobs–Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Direct materials cost Direct labor cost Machine-hours Molding $375,000 $200,000 14,000 Fabrication $325000 $160,000 6,000 Total $700000 $360,000 20,000 Job C -200 Direct materials cost Direct labor cost Molding $300,000 $175,000 6,000 Fabrication $250,000 $225,000 24,000 Total $550,000 $400,000 30,000 Machine-hours Delph had no underapplied or overapplied manufacturing overhead during the year.
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.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
