Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during July Job Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information from month of July is available for the company as a whole and for Jobs Y and Z: Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor hours to be worked Total actual manufacturing overhead costs incurred Direct materials Direct labor cost Actual direct labor hours worked Assuming Job Z contains 200 units, what is Job Z's unit product cost? Multiple Choice $106.25 586 25 Job Y $ 13,000 $ 21,000 1,400 Job 2 $8,000 $7,500 500 $ 13,000 $ 1.00 2,000 $ 12,800
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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