Deluxe Tech creates and sells custom high-performance gaming PCs. Deluxe Tech uses a normal job costing system to monitor its product costs. At the end of February 2023, the following details are available: •Job #101 was initiated in January 2023 with $3,600 allocated to its production before February 2023 began. •Jobs # 102 and # 103 were initiated in February 2023. • Jobs # 101 and # 102 were completed in February 2023 • Job # 103 was completed in March 2023. • The subsequent costs were accumulated in relation to the production of the three jobs in February 2023: Direct Material Direct Labour Job # 101 $2,300 $3,200 Job #102 $4,200 $5,400 Job #103 $2,300 $1,700 At Deluxe Tech, workers are compensa.....$22 per hour. Manufacturing overhead is allocated at a predetermined rate of $6.50 per direct labour hour. Required: Determine the total costs of goods manufactured at Deluxe Tech in
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.
Step by step
Solved in 3 steps
