A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Job 10 Hours Total Cost Direct materials Direct labor Manufacturing overhead Total cost Job 20 Direct materials Direct labor Manufacturing overhead Total cost Hours 85 110 Total Cost $755 1,785 51 $2,591 $135 2,310 66 $2,511 Using the information provided, A. What is the balance in work in process? $fill in the blank 1 B. What is the balance in the finished goods inventory? $fill in the blank 2 C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate? Round your final answer to nearest cent. $fill in the blank 3 per direct labor hour
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.
Please do not give solution in image format thanku
Step by step
Solved in 3 steps
