From Beginning JIP Incurred in May Band Labor General Overhead Allocated Labor $16,000 Cococrunch Candy Bars Brite Toothpaste Verde Organic Salsa Sparkle Dish Liquid $18,000 $27,000 4,000 6,000 34,000 22,400 5,600 As of May 1, there were two jobs in progress: Cococrunch Candy Bars, and Brite Toothpaste. The jobs for Verde Organic Salsa and Sparkle Dish Liquid were started during May. The jobs for Cococrunch Candy Bars and Sparkle Dish Liquid were completed during May. 1. Calculate JIP at the end of May. 2. Calculate CCJ for May. 3. Calculate under- or overallocated overhead at the end of May. 4. Calculate the ending balances in JIP and CCJ if the under- or overallocated overhead amount is as follows: Required a. Written off to CCJ b. Prorated based on the ending balances (before proration) in JIP and CCJ c. Prorated based on the overhead allocated in May in the ending balances of JIP and CCJ (before proration) 5. Which method would you choose? Explain. Would your choice depend on whether overhead cost is underallocated or overallocated? Explain.
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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