Bolles Corporation manufactures products on a job-order basis. The job cost sheet for Job #902 shows the following for April: Direct material P6,000 Direct labor (110 hours @ P8.50) P935 Machine hours incurred 50 Predetermined overhead rate per machine hour P28 At the end of April, what total cost appears on the job cost sheet for Job #902? a. P 6,935 b. P 6,985 c. P 8,335 d. P10,0
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.
- Bolles Corporation manufactures products on a job-order basis. The
job cost sheet for Job #902 shows the following for April:
|
Direct material |
P6,000 |
|
Direct labor (110 hours @ P8.50) |
P935 |
|
Machine hours incurred |
50 |
|
Predetermined |
P28 |
At the end of April, what total cost appears on the job cost sheet for Job #902?
|
a. |
P 6,935 |
|
b. |
P 6,985 |
|
c. |
P 8,335 |
|
d. |
P10,015 |
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