During March 2022, Integrity Company worked on three jobs. Data relating to these three jobs follows: JOB NO. 200 JOB NO. 201 JOB NO. 203 2,000 Units in each order Units sold 1,200 3,000 1,200 2,500 Materials requisitioned P25,000 P30,000 Direct labor hours 1,000 2,000 P60 P60 Direct labor rate per hour Overhead is applied at 80% of direct labor cost. During March, Job no. 200 was completed & delivered to customer at 125% of cost. Job no. 203 was placed in stock. Job no. 201 was the only unfinished job at the end of the month. The cost of goods manufactured for the month was: ● P366,000 ● P362,000 ● P575,000 ● P379,000 P40,000 1,500 P70
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.
The cost of goods manufactured for the month was:
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