Archer Company produces leather jacket for individual and corporation. On September 1$t 2016, three jobs are in process, with cost as follows in USD Job CLOSER Job ROSES Job DLMD Direct materials 4.5 9 13.5 Direct labor 3.5 6. 9.5 Applied overhead 6 12 18 Total 14 27 41 During September 2016, there are two new jobs that they just start working, Job CHAINS and Job MOKERS. At the end of September, it's known that Job CLOSER are not finished yet (Work in Progress) and Job DLMD & MOKERS are already finished but not sold yet ( Finished Goods), the rest are already finished and sold (Cost of Goods Sold). Raw material cost and labor cost that consumed by each job during September 2016 as follows Direct Materials Direct Labor MOH allowed Job CLOSER 4 ??? Job ROSES 1.5 2 ??? Job DLMD 2.6 1.5 ??? Job CHAINS 8 6.5 ??? Job MOKERS 7.6 7 ???
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.
Archer Company produces leather jacket for individual and corporation. On September 1st 2016, three jobs are in
Questions :
a. If the allocation base that the company use is direct materials, calculate the budgeted
b. Calculate the
c. Calculate the total cost of WIP at the end of September 2016
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