Creative Solutions uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Creative Solutions allocates manufacturing overhead costs using direct manufacturing labor costs. Creative Solutions provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2019 Actual Results for 2019 $2,000,000 $1,500,000 $2666015 $1,900,000 $1,450,000 Required: Compute the cost of Job X using actual costing O a. 118511 O b. 88511 OC 128511 O d. 148015 $2828034 During March, the job-cost record for Job X contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $30,000 Taylor
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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