Exercise 5: USE OF COST SHEETS Siboney Furniture, Inc. started its operation in 200C and has requested for your assistance in costing the different jobs it processed during the first two months of the year. Based on estimated factory overhead figures, the same should be charged at the rate of P25 per direct labor hour. Desired gross profit is 33-1/3 % of selling price. The jobs worked on in January and February and the corresponding direct charges are as follows: January, 200M Jobs accepted: Job Order No. 001: 250 narra chairs for Lauro Miguel Ordered January 5 and needed on February 10 Date started: January 7 Date finished: February 8 Job Order No. 002: Ten (10) of mahogany bar stools for Delia Ruiz Ordered January 8 and needed on January 30 Date started: January 10 Date finished: January 26 February, 200M

Q: What is a component cost?

A: The most granular description of element costs is the cost components.  Types of cost components are…

Q: Examples of varaible cost

A: Variable costs are those costs which changes along with change in level of activity. As production…

Q: Define the term traditional cost accounting.

A: Traditional costing is described as all of the overhead prices are assembled collectively and then…

Q: The product cost  period cost  opertunity cost

A: Solution:- 1)Calculation of product cost as follows under:- Product cost means costs incurred to…

Q: explain the importance of cost behavior

A: Cost behavior refers to any change in the behavior of cost due to change in the level of output or…

Q: What is a cost object?

A: Introduction:

Q: Describe factors for measuring cost allocation.

A: Cost:   It is the economic value incurred by the company to manufacture a product or render a…

Q: What is cost management, and how does it differ from management accounting and cost accounting?

A: Cost accounting and management accounting are two different forms of accounting, that is being…

Q: Define and explain the two major subsystems of the cost management information system.

A: The Cost Accounting Information System (CAIS) is a monetary accounting system that calculates the…

Q: Examples of absorption costing

A: Absorption costing is a method of accounting that takes into account all the costs associated with…

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.