b) Quality Footwear incurs these costs for the month: Production wages Advertising costs $ 6 200 $ 800 $ 8.000 $ 4 000 $ 1000 $860 Repairs and maintenance on office building $2500 Glue and pins $ 400 Leather material used Research costs Depreciation on factory equipment Factory cleaners' wages Required: Determine each of the following costs: (list the costs under each cost category when calculating the answer). 11. Product costs
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.
![b) Quality Footwear incurs these costs for the month:
Production wages
$ 6 200
Advertising costs
$
800
$ 8.000
$ 4 000
Depreciation on factory equipment
$1.000
Factory cleaners' wages
$860
Repairs and maintenance on office building $2.500
Glue and pins
$ 400
Leather material used
Research costs
Required:
Determine each of the following costs: (list the costs under each cost category when calculating
the answer).
1. Product costs
ANSWER b (i):](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce123d7-ec28-4713-8995-d1c19687ec94%2F56f42482-8e65-406e-b967-1b81ee2a5734%2F010jlxq_processed.jpeg&w=3840&q=75)
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