All School Logos & More (ASLM) design and manufacture school uniform crests. After production, the crests are placed into individual plastic cases, before being transferred into Finished Goods. The accounting records of the business for the quarter to December 31, 2021, for the manufacturing of uniform crests for Hill Point High School are given below. 1/10/2021 31/12/2021 $72,000 Inventory Raw Materials Work in Progress $138,875 Finished Goods $65,000 $129,125 $141,700 $149.500 Other information: Sales Revenue Factory Labour Raw Materials Purchased Office Cleaner's Wages Factory Supplies Used Depreciation: Factory Plant & Equipment Total Utilities · Plant Supervisor's Salary Design Costs (School Logo) Packaging Material Cost Total Insurance - Delivery Vehicle Drivers' Wages |Depreciation: Delivery Vehicle Property Taxes » Administrative Wages & Salaries Sales Commission $1,694.950 239.700 235.000 4.500 23.500 32,000 118,750 180,000 4.300 35,000 60,000 41,250 7.250 105.000 123.750 2% of Net Profit before Commission|
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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