Accounts and Explanation Credit Date Debit Manufacturing Overhead Cost of Goods Sold b. Manufacturing Overhead Cost of Goods Sold Cost of Goods Sold Manufacturing Overhead d. Cost of Goods Sold Manufacturing Overhead a. 10,000 10,000 41,000 41,000 C. 41,000 41,000 10,000 10,000 Indirect labor $ 11,000 Depreciation on plant 48,000 Machinery repair 11,000 Direct labor 75,000 Plant supplies 6,000 Plant utilities 7,000 Advertising 35,000 Sales commissions 27,000
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.
What entry would Gell make to adjust the manufacturing
Gell Corporation manufactures computers. Assume that Gell:
• allocates manufacturing overhead based on machine hours
• estimated 12,000 machine hours and $93,000 of
• actually used 16,000 machine hours and incurred the following actual costs:
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