23. Mansoor Garment Industry workers produce or repair clothing made from cloth. The three asic processes of garment production are cutting, sewing and pressing. According to the Labour lepartment there are 5 sewing operator, 10 cutting operators and 8 pressing operators. The Standard rate per hour for operators is OMR 12 OMR, Normal rate per unit is OMR 2, Working ours per day are 8 hours, Standard Output per hour is 100 units. Five Sewing workers Khalid, Rashid, Ahmed, Khamis and Nasir were engaged in the work and receives earnings by using Merrick Differential Piece Rate System. The Output is as follows Khalid 500 units, Rashid 850 nits, Ahmed 700 units, Khamis 800 units and Nasir 1,000 units. You are required to calculate the arnings of all the five workers of sewing operators and also identify which of the worker is getting
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.
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