Foley, Inc is a mid-sized manufacturing company located 30 miles north of the Gulf of Mexico. Foley uses a normal costing system to maintain costing information. The records for the current year revealed the following data: Work in Process Finished Goods Cost of Goods Sold Direct Labor Direct Material $73,150 115,000 133,650 111,600 84,200 Assume, for this question only, actual overhead is $98,700 and applied overhead is $93,250. Manufacturing overhead is: Group of answer choices underapplied by $18,350. overapplied by $5,450. underapplied by $5,450. overapplied by $12,900.
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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