Fill in the blanks Direct Materials 500 200 600 Direct Labour 150 750 500 Manufacturing Overhead (MOH) 260 250 Total Job Cost 1000 1500 Basis of MOH Allocation N/A 400% of DL $50 / DLH ___% of DL # of DLH N/A N/A 5 N/A
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.
Fill in the blanks
| Direct Materials | 500 | 200 | 600 | |
| Direct Labour | 150 | 750 | 500 | |
| Manufacturing |
260 | 250 | ||
| Total |
1000 | 1500 | ||
| Basis of MOH Allocation | N/A | 400% of DL | $50 / DLH | ___% of DL |
| # of DLH | N/A | N/A | 5 | N/A |
Predetermined Overhead Rate :— It is calculated by dividing total overhead cost by cost allocation base.
Predetermined Overhead Rate
= Total Overhead Cost/Cost allocation base
Manufacturing Overhead Applied :— It is the indirect cost applied in the manufacturing of product during the production process.
It is calculated by multiplying predetermined overhead rate with actual cost allocation base.
Total Job Cost :— It is the total manufacturing cost incurred in the manufacturing of product. It is calculated by adding direct material, direct labour and manufacturing overhead applied.
Total Job Cost = Direct material + Direct Labour + Manufacturing Overhead (MOH)
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