Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding 22,000 $ 720,000 $ 4.00 Fabrication Total Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour 32, е00 $ 220,000 $ 1.50 54,000 $ 940,000 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job D-70 and Job C-200. It provided the following information related to those two jobs: Molding $ 370,000 $ 220,000 13,000 Job D-70 Fabrication Total Direct materials cost Direct labor cost Machine-hours $ 320,000 $ 180,000 9,000 $ 690,000 $ 400,000 22,000 Molding $ 300,000 $ 140,000 9,000 Job C-200 Fabrication Total $ 280,000 $ 240,000 23,000 $ 580,000 $ 380,000 32,000 Direct materials cost Direct labor cost Machine-hours Delph had no underapplied or overapplied manufacturing overhead during the year.
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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Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication.
The company provided the following estimates at the beginning of the year:
Molding
22,000
$ 720,000
$ 4.00
Fabrication
Total
Machine-hours
Fixed manufacturing overhead cost
Variable manufacturing overhead cost per machine-hour
32,000
$ 220,000
$ 1.50
54,000
$ 940,000
During the year, the company had no beginning or ending inventories and it started, completed, and sold only two
jobs-Job D-70 and Job C-200. It provided the following information related to those two jobs:
Molding
$ 370,000
$ 220,000
13,000
Job D-70
Direct materials cost
Fabrication
Total
Direct labor cost
Machine-hours
$ 320,000
$ 180,000
$ 690,000
$ 400,000
22,000
9,000
Molding
$ 300,000
$ 140,000
Job C-200
Fabrication
Total
$ 280,000
$ 240,000
23,000
$ 580,000
$ 380,000
32, 00ө
Direct materials cost
Direct labor cost
Machine-hours
9,000
Delph had no underapplied or overapplied manufacturing overhead during the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d921497-5a53-442a-a059-66fc6bff7335%2F7943b44e-b916-4e08-893c-d5bce8a8a114%2F7pmsf0o_processed.png&w=3840&q=75)
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