Departmental information for the four departments at Samoa Industries is provided below. Square Number of Total Cost Cost Driver Feet Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Determine the dollar amount of the Cafeteria Department costs to be allocated to the (a) Cutting and (b) Assembly departments using the direct method. a. Cutting Department b. Assembly Department
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.
Departmental information for the four departments at Samoa Industries is provided below.
| Total Cost | Cost Driver | Square Feet | Number of Employees | ||||
| Janitorial | $150,000 | Square footage serviced | 200 | 40 | |||
| Cafeteria | 50,000 | Number of employees | 20,000 | 12 | |||
| Cutting | 1,125,000 | 4,000 | 120 | ||||
| Assembly | 1,100,000 | 16,000 | 40 |
The Janitorial and Cafeteria departments are support departments. Determine the dollar amount of the Cafeteria Department costs to be allocated to the (a) Cutting and (b) Assembly departments using the direct method.
| a. Cutting Department | $ | |
| b. Assembly Department | $ |
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