A company produces two products, A and B, that go through a three-step sequence of fabrication, assembly, and packaging. Processing requirements for the departments (hours per unit) are: Product A B Day A B Department capacities are all 7 hours per day. The following production schedule is for the next three days: Mon Tues Wed 1 1 1 2 1 5 Fabrication 1.0 2.0 Job Start Day Mon Tue a. Develop, for each department and day, the capacity requirements for each product and the total load for each day. Ignore changeover time between A and B. Evaluate the projected loads for each day. (Round the final answers to 1 decimal place.) Wed Product A B Assembly 2.0 2.0 A B A B Packaging 2.0 1.0 Fabrication Labor Assembly Labor Packaging Labor
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.
![A company produces two products, A and B, that go through a three-step sequence of fabrication, assembly, and packaging.
Processing requirements for the departments (hours per unit) are:
Product
A
B
Day
A
B
Department capacities are all 7 hours per day. The following production schedule is for the next three days:
Mon Tues
1
1
2
1
Fabrication
1.0
2.0
Job
Start Day
Mon
Tue
Wed
Wed
1
5
a. Develop, for each department and day, the capacity requirements for each product and the total load for each day. Ignore
changeover time between A and B. Evaluate the projected loads for each day. (Round the final answers to 1 decimal place.)
Product
A
B
Assembly
2.0
2.0
A
B
A
B
Packaging
2.0
1.0
Fabrication
Labor
Assembly
Labor
Packaging
Labor
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