During the month of January 2020, the job-cost record for Job 123 shows the following: Job 123: Machine Department Assembly Department Manufacturing overhead costs 19 500 7 500 Direct manufacturing labor costs 1 350 1 875 Direct manufacturing labor-hours 30 105 Machine-hours 210 30 Compute the total manufacturing overhead cost allocated to Job 123. Assume that Job 123 produced 450 units, calculate the cost per unit.
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.
- During the month of January 2020, the job-cost record for Job 123 shows the following:
|
Job 123:
|
Machine Department |
Assembly Department |
|
|
19 500
|
7 500
|
|
Direct manufacturing labor costs
|
1 350
|
1 875
|
|
Direct manufacturing labor-hours
|
30
|
105
|
|
Machine-hours |
210 |
30 |
Compute the total manufacturing overhead cost allocated to Job 123.
- Assume that Job 123 produced 450 units, calculate the cost per unit.
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