A manufacturer ended April with one job in process (Job 220); its job cost sheet included direct materials of $5,820, direct labor of $2,920, and applied overhead of $3,504. The company uses a predetermined overhead rate of 120% of direct labor cost to apply overhead. In May, Job 220 was sold for $27,720 (on credit). Also in May, Jobs 221 and 222 were started. Job 221 was completed in May and Job 222 is in process at the end of May. The company incurs the following costs in May. Direct materials used Direct labor used Job 220 $ 2,305 2,520 Required 1 Required 2 Job 221 $ 7,475 4,020 Job 222 $ 2,620 3,020 Complete this question by entering your answers in the tabs below. Compute the May 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (There were no
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.
Sav
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
