Direct labour $1,800,000 Manufacturing overhead 900,000
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.
| Direct labour | $1,800,000 | |
| Manufacturing overhead | 900,000 |
As at the end of the year, two jobs were incomplete. These were 1768B, with total direct labour charges of $110,000, and 1819C, with total direct labour charges of $390,000. Machine hours were 287 hours for 1768B and 647 hours for 1819C. Direct materials issued for 1768B amounted to $220,000, and for 1819C they amounted to $420,000.
Total charges to the Manufacturing Overhead Control account for the year were $897,000, and direct labour charges made to all jobs amounted to $1,573,600, representing 247,200 direct labour hours.
There were no beginning inventories. In addition to the ending work in process just described, the ending finished goods inventory account showed a balance of $556,000.
Sales for the year amounted to $6,201,300; cost of goods sold totalled $3,614,000; and sales, general, and administrative expenses were $1,847,800.
The above amounts for inventories and the cost of goods sold have not been adjusted for any over-or under-application of manufacturing overhead to production. It is the company’s practice to allocate any over-or under-applied overhead to inventories and the cost of goods sold.
(a)
- Your Answer
- Correct Answer (Used)
| Manufacturing overhead | $enter a dollar amount | select an option |
eTextbook and Media
(b)
- Your Answer
- Correct Answer (Used)
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Allocation
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Cost of goods sold
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$enter a dollar amount | |
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Finished goods inventory
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enter a dollar amount | |
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WIP inventory
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enter a dollar amount | |
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Total
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$enter a total amount |
eTextbook and Media
(c)
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BLOSSOMLIMITED
Income Statement choose the accounting period |
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select an income statement item
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$enter a dollar amount | |
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select between addition and deduction : select an income statement item
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enter a dollar amount | |
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select a summarizing line for the first part
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enter a total amount for the first part | |
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select between addition and deduction : select an income statement item
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enter a dollar amount | |
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select a summarizing line for the second part
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enter a total amount for two parts | |
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select an income statement item
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enter a dollar amount | |
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select a closing name for this statement
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$enter a total net income or loss amount |
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