ABC company had the following data for the current year Work in Process, beginning $110,000 Direct materials used in 45,000 Actual Overhead 60,000 Overhead applied 70,000 Work in Process, ending balance 30,000 Cost of goods manufactures 235,000 Determine the amount of direct labor cost incurred 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.
ABC company had the following data for the current year
Work in Process, beginning $110,000
Direct materials used in 45,000
Actual
Overhead applied 70,000
Work in Process, ending balance 30,000
Cost of goods manufactures 235,000
Determine the amount of direct labor cost incurred during the year
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