During January 2021, LOBO Company worked on three jobs, under normal cost system. Data relating to these three jobs follows: JOB NO. 100 JOB NO. 101 JOB NO. 103 1,800 P32,000 1,000 Units in each order 3,000 4,500 Raw Materials requisitioned Direct labor hours Direct labor rate per hour Actual Indirect materials used P42,000 P45,000 1,500 2,000 P60 2,000 P60 P70 5,000 3,000 Overhead is applied at 80% of direct labor cost. During January, Job no. 100 was completed & delivered to customer at 25% markup based on cost. Job no. 103 was placed in stock. Job no. 101 was the only unfinished job at the end of the month. The billing price for Job No. 100 per unit amounted to
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.
The billing price for job no. 100 per unit amounted to ________
Step by step
Solved in 2 steps
