Acb system manufactures specialty electrical systems for luxury yachts. Since the systems are unique, Acb designs each piece to customer specifications. The company uses a job-order cost system and applies overhead on the basis of labor hours using a predetermined overhead rate. For the year, budgeted manufacturing overhead is $7,800,000 and the expected activity level is 120,000 labor hours. Data regarding jobs in October are presented below. Balance Direct Direct Labor 9/31/2023 Materials Labor Hours A $187,576 $68,657 $28,400 950 B 169,745 17,625 12,160 400 C 103,900 21,680 15,460 515 D 18,670 167,400 48,000 1,600 E 0 115,000 136,800 4,560 F 0 28,900 12,580 420 By the end of October 2020, all jobs but E and F were completed, and all completed jobs had been delivered to customers with the exception of C and D. 1. What is the WIP Ending Balance for September? 2. What is the amount of COGM for September? 3. What is the amount of COGS for
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.
| Acb system manufactures specialty electrical systems for luxury yachts. Since the systems are unique, Acb designs each piece to customer specifications. The company uses a |
|||||
| Balance | Direct | Direct | Labor | ||
| 9/31/2023 | Materials | Labor | Hours | ||
| A | $187,576 | $68,657 | $28,400 | 950 | |
| B | 169,745 | 17,625 | 12,160 | 400 | |
| C | 103,900 | 21,680 | 15,460 | 515 | |
| D | 18,670 | 167,400 | 48,000 | 1,600 | |
| E | 0 | 115,000 | 136,800 | 4,560 | |
| F | 0 | 28,900 | 12,580 | 420 | |
| By the end of October 2020, all jobs but E and F were completed, and all completed jobs had been delivered to customers with the exception of C and D. | |||||
| 1. What is the WIP Ending Balance for September? | |||||
| 2. What is the amount of COGM for September? | |||||
| 3. What is the amount of COGS for September? |
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
