As of September 1, 20C, there are two jobs in process with accumulated prime costs as follows: Job 71: No. of units - 6,000, Direct materials - P5,000, Direct labor - P2,000. Job 72: No. of units - 5,000, Direct materials - P4,000, Direct labor - P1,800. Job 72 is special in nature because of its strict specifications. Factory overhead is charged at P.40 per unit and includes a P.03 provision for defective work. The prime costs incurred in September are as follows: Job 71: Direct materials - P3,000, Direct labor - 2,000; Job 72: Direct materials - P5,000, Direct labor 3,000; Job 75: No. of units - 3,000, Direct materials - P4,500, Direct labor - 2,000; Job 76: No of units - 2,000, Direct materials - P2,500, Direct labor - 1,500. Some units are found to have imperfections and the corresponding prime costs incurred in reprocessing are as follows: No. of units found with imperfections: Job 71 - 50, Job 72 - 80, Job 75 - 40. Prime costs in reprocessing: Direct materials = Job 71 - P500, Job 72 - P1,500, Job 75 - P300; Direct labor= Job 71 - 200, Job 72 - 800, Job 75 - 100. Jobs 71, 72 and 75 were completed. The units cost in each completed job must be: Job 71- P2.49, Job 72 - P3.60, Job 75 - P2.57 Job 71- P2.37, Job 72 - P3.13, Job 75 - P2.54 Job 71- P2.40, Job 72 - P3.60, Job 75 - P2.57
As of September 1, 20C, there are two jobs in process with accumulated prime costs as follows: Job 71: No. of units - 6,000, Direct materials - P5,000, Direct labor - P2,000. Job 72: No. of units - 5,000, Direct materials - P4,000, Direct labor - P1,800. Job 72 is special in nature because of its strict specifications. Factory overhead is charged at P.40 per unit and includes a P.03 provision for defective work. The prime costs incurred in September are as follows: Job 71: Direct materials - P3,000, Direct labor - 2,000; Job 72: Direct materials - P5,000, Direct labor 3,000; Job 75: No. of units - 3,000, Direct materials - P4,500, Direct labor - 2,000; Job 76: No of units - 2,000, Direct materials - P2,500, Direct labor - 1,500. Some units are found to have imperfections and the corresponding prime costs incurred in reprocessing are as follows: No. of units found with imperfections: Job 71 - 50, Job 72 - 80, Job 75 - 40. Prime costs in reprocessing: Direct materials = Job 71 - P500, Job 72 - P1,500, Job 75 - P300; Direct labor= Job 71 - 200, Job 72 - 800, Job 75 - 100. Jobs 71, 72 and 75 were completed. The units cost in each completed job must be: Job 71- P2.49, Job 72 - P3.60, Job 75 - P2.57 Job 71- P2.37, Job 72 - P3.13, Job 75 - P2.54 Job 71- P2.40, Job 72 - P3.60, Job 75 - P2.57
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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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3.
As of September 1, 20C, there are two jobs in process with accumulated prime costs as follows: Job 71: No. of units - 6,000, Direct materials - P5,000, Direct labor - P2,000. Job 72: No. of units - 5,000, Direct materials - P4,000, Direct labor - P1,800. Job 72 is special in nature because of its strict specifications. Factory overhead is charged at P.40 per unit and includes a P.03 provision for defective work. The prime costs incurred in September are as follows: Job 71: Direct materials - P3,000, Direct labor - 2,000; Job 72: Direct materials - P5,000, Direct labor 3,000; Job 75: No. of units - 3,000, Direct materials - P4,500, Direct labor - 2,000; Job 76: No of units - 2,000, Direct materials - P2,500, Direct labor - 1,500. Some units are found to have imperfections and the corresponding prime costs incurred in reprocessing are as follows: No. of units found with imperfections: Job 71 - 50, Job 72 - 80, Job 75 - 40. Prime costs in reprocessing: Direct materials = Job 71 - P500, Job 72 - P1,500, Job 75 - P300; Direct labor= Job 71 - 200, Job 72 - 800, Job 75 - 100. Jobs 71, 72 and 75 were completed. The units cost in each completed job must be:
Job 71- P2.49, Job 72 - P3.60, Job 75 - P2.57
Job 71- P2.37, Job 72 - P3.13, Job 75 - P2.54
Job 71- P2.40, Job 72 - P3.60, Job 75 - P2.57
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