During March, Mark Company incurred the following costs on Job 209 for the 200 motors: Original cost accumulation: Direct materials P 660 Direct labor 800 Factory overhead 1,200 P2,660 Direct costs of reworking 10 units: Direct materials P 100 160 Р 260 Direct labor Method A- The rework cost were attributable to the exacting specifications of Job 209, and the full rework costş were charged to this specific job. Method B- The defective units fall within the normal range and the rework is not related to a specific job, or the rework is common to all the jobs. 15. The cost per finished unit of Job 209 using Method A is: a. P15.60 b. P15.80 c. P13.30 d. P13.50
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.
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