Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 70,000 Direct labor $ 35,500 Variable manufacturing overhead $ 15,400 Fixed manufacturing overhead 28,300 Total manufacturing overhead $ 43,700 Variable selling expense $ 12,200 Fixed selling expense 18,400 Total selling expense $ 30,600 Variable administrative expense $ 4,100 Fixed administrative expense 25,200 Total administrative expense $ 29,300
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.
how i can i calculate direct and indiret cost
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
| Direct materials | $ | 70,000 | ||||
| Direct labor | $ | 35,500 | ||||
| Variable manufacturing |
$ | 15,400 | ||||
| Fixed manufacturing overhead | 28,300 | |||||
| Total manufacturing overhead | $ | 43,700 | ||||
| Variable selling expense | $ | 12,200 | ||||
| Fixed selling expense | 18,400 | |||||
| Total selling expense | $ | 30,600 | ||||
| Variable administrative expense | $ | 4,100 | ||||
| Fixed administrative expense | 25,200 | |||||
| Total administrative expense | $ | 29,300 | ||||
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