B. Job No. 8984, relates to an order for a custom double king bed set. The data for Job No. 8984 is as follows: Department 1 Department 2 Department 3 Direct materials Direct wages RM700 RM500 RM300 45hours@RM12 50 hours® RM15 20 hours @RM10 Machine hours 20 hours 10 hours 5 hours The production overhead absorption rates are as follows: Department 1 Department 2 Department RM5 per machine hour RM6 per direct labour hour 5% of prime cost Other costs relating to Job No. 8984 are: 1. Administrative expenses worth RM150 2. Selling and distribution expenses based on 15% of production cost 3. Hire of special machine value at RM550. 4. Calculate the selling price, given the profit margin is 25%
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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