Adams Co. uses a job order costing system and the following information is available from its records. The company has 3 jobs in process: #5, #8, and #12 Raw materials used Direct labor per hour Overhead applied on direct labor cost. P120,000 P8.50 14. The total applied overhead for the period is a. P69,000 C. P132,960 b. P99,960 d. P144,000 120% Direct materials were requisitioned as follows for each job respectively: 30 percent, 25 percent, and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500, 3,100, and 4,200; respectively. Indirect labor cost is P33,000. Other actual overhead costs totaled P36,000. 15. If Job #12 is completed and transferred to Finished Goods, what is the balance of Work in process inventory at the end of the period? P139,540 C. a. P96,700 b. P99,020 d. P170,720
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.
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