Company began operations 1, of operations, Plato Company established the following standards for one unit of its single product standard quantity 7 pounds 8 hours 8 hours Plato Company reported the following information for June: 1. 7,000 pounds of direct materials were purchased at a total cost of $113,750. 2. 5,400 direct labor hours were worked at a total cost of $75,600. 3. The variable overhead cost for the month totaled $52,950. 4. 460 units were produced. 5. At June 30, Plato Company had 2,300 pounds of direct materials on hand. standard price $14 per pound $17 per hour $11 per hour direct materials direct labor variable overhead
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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