Cullumber Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production. 1. 2. 3. 4. 5. 6. 7. Job Number General factory use Job Materials purchased on account $161,280, and factory wages incurred $73,420. Materials requisitioned and factory labor used by job: A20 A21 A20 A23 A21 A22 A23 Materials $29,590 36,060 $ 30,320 33,000 3,760 $132,730 Factory Labor $15,200 Prepare a schedule showing the individual cost elements and total cost for each job in item 7. Direct Materials 18,480 12,600 $ 21,000 Manufacturing overhead costs incurred on account $41,580. (Hint: Use Accounts Payable.) Depreciation on factory equipment $12,220. Depreciation on the company's office building was $12,020. Manufacturing overhead rate is 90% of direct labor cost. Jobs completed during the quarter: A20, A21, and A23. 6,140 $73,420 Direct Labor 1 $ Manufacturing Overhead 1 $ $ Total
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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