following information for transactions that occurred during March. This division uses a JIT costing system. a. Raw materials were purchased at the cost of P97,000. b. All materials purchased were requisitioned for production. c. Direct labor costs of P77,000 were incurred. d. Actual factory overhead costs amounted to P225,000. e. Applied conversion costs totaled P300,000. This included P77,000 of direct labor. f. All units were completed. Compute for the following: _4. How much is actual conversion cost? _5. How much is the applied conversion cost _6. Determine the amount to be backflushed from Raw and in Process account to Finished Goods account (include materials and conversion cost).
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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