Daily Prophet produces newspapers. They use a job-order cost system to accumulate their manufacturing costs, and a traditional allocation method for applying manufacturing overhead costs. During the month, the Daily Prophet worked on three different jobs. Job B-100 and Job B-200 were sold at cost plus 40%. Job B-300 was completed but unsold at the end of the period. Job B-100 Job B-200 Job B-300 Beginning Balance $38,500 $23,500 $32,900 Direct Materials $15,800 $35,000 $47,800 Direct Labor $37,600 $49,200 $18,700 Manufacturing Overhead $43,044 $36,100 $43,400 What is the sales revenue for the month? A. $199,920 B. $390,242 C. $278,744 D. $590,162
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.
Daily Prophet produces newspapers. They use a
During the month, the Daily Prophet worked on three different jobs. Job B-100 and Job B-200 were sold at cost plus 40%. Job B-300 was completed but unsold at the end of the period.
| Job B-100 | Job B-200 | Job B-300 | |
| Beginning Balance | $38,500 | $23,500 | $32,900 |
| Direct Materials | $15,800 | $35,000 | $47,800 |
| Direct Labor | $37,600 | $49,200 | $18,700 |
| Manufacturing Overhead | $43,044 | $36,100 | $43,400 |
What is the sales revenue for the month?
A. $199,920
B. $390,242
C. $278,744
D. $590,162
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