Enterprise uses bespoke costing and allocates GGE on the basis of Direct Labour. In the March period three orders were in progress and the related data (in EUR) are set out in the table below: Order 1 Order 2 Order 3 Production in progress beginning 8.500 0 46.000 Direct Materials period 17,150 29,025 0 Direct labour for the period 12.500 23.000 4.500 The total allocated GFCF for the period was EUR 140,000. Orders 1 and 2 were not had been completed at the end of the period. The attributed GVA included in the Production in progress at the end are (amounts in EUR): α. 124.250 β. 132.525 γ. 170.425 δ. 214.425
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.
Enterprise uses bespoke costing and allocates GGE on the basis of Direct Labour. In the March period three orders were in progress and the related data (in EUR) are set out in the table below:
Order 1 Order 2 Order 3
Production in progress beginning 8.500 0 46.000
Direct Materials period 17,150 29,025 0
Direct labour for the period 12.500 23.000 4.500
The total allocated GFCF for the period was EUR 140,000. Orders 1 and 2 were not had been completed at the end of the period. The attributed GVA included in the Production in progress at the end are (amounts in EUR):
α. 124.250
β. 132.525
γ. 170.425
δ. 214.425
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