From the following information, prepare Job No. 1314 and Job No. 1425 accounts in the Job Cost I edger : Job No. 1314 Job No. 1425 Rs. 2.400 16,800 9.600 1.000 Rs. 1.200 14.400 5,000 500 The production overheads are to be taken at 100% of wages and administration overheads at 20% of the production cost. The contract price of Job No. 1314. which is completed, is fixed at Rs. 55.000. Job No. 1425 is under progress. Direct materials Materials received from stores Direct wages Other direct expenses
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
