All of the following companies manufacture toasters. The following costs were incurred by each company during September: Direct labor Rent Utilities Heating elements Depreciation Painted Catalina Inc. Warner Co.Trails Co. $13,300 $10,450 $73,500 68,700 98,100 4,000 17,600 88,200 43,300 102,200 7,200 11,000 29,300 4,950 2,700 Required: What is the total conversion cost for Warner Co.? Sunrise Co. $36,900 55,700 9,200 66,100 39,100 What is the total manufacturing overhead for Painted Trails Co.? What is the total conversion cost for Catalina Inc.? What is the total manufacturing overhead for Sunrise Co.?
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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