ances on March 31 irect materials used (in March) rect labor used (in March) werhead applied (March) Es during April irect materials used irect labor used werhead applied tatus on April 30 onal Information Job 306 $ 36,600 27,600 17,600 154,000 92,600 ? Finished (sold) Job 307 $ 42,600 25,600 16,600 239,000 169,000 ? Finished (unsold) Job $ 119 124 ? In pre
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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Marco Company shows the following costs for three jobs worked on in April.
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
Status on April 30
Additional Information
Req 5A
Req 5B
Job 306
Inventories
Raw materials
Work in process
Finished goods
Total inventories
$36,600
27,600
17,600
154,000
92,600
?
Finished
(sold)
a. Raw Materials Inventory has a March 31 balance of $87,600.
b. Raw materials purchases in April are $519,000, and total factory payroll cost in April is $382,000.
c. Actual overhead costs incurred in April are indirect materials, $54,750; indirect labor, $27,750; factory rent, $36,750;
factory utilities, $23,750; and factory equipment depreciation, $55,750.
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $654,000 cash in April.
Complete this question by entering your answers in the tabs below.
$
452,600
119,000 X
393,000
$ 964,600
Job 307
5-a. Compute gross profit for April.
5-b. Show how the three inventory accounts are reported on the April 30 balance sheet.
$ 42,600
25,600
16,600
239,000
169,000
?
Finished
(unsold)
Show how the three inventory accounts are reported on the April 30 balance sheet.
Job 308
$ 119,000
124,000
?
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