Exercise II Set A 1. Bulacan Manufacturing Corporation uses the job order cost system of accounting. Shown below is a list of the jobs completed during the month of December showing the actual charges for materials, labor and other production costs. 11 to 1200 box no is suvod hodel Job Order 111 121 131 141 devet mich 5024 Materials and Labor Direct Indirect Direct 7,000.00 150.00 3,000.00 2,000.00 50.00 880.00 2,800.00 75.00 1,000.00 4,200.00 100.00 1,800.00 Indirect 600.00 170.00 200.00 360.00 Units Other Production Costs Completed 3,725.00 1,170.00 1907 1,320.00 2,250.00 nch 9999 quod 100%! Required: 1. Assuming that factory overhead is applied on the basis of direct labor costs and that the predetermined rate is 150%, determine the following: Vorgeto 10 Che 10 10 10 Job d. Unit cost of jobs completed. 01 dal od 10% e. Is the factory overhead over-applied or under-applied? By how much?
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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