G Toy Shop manufactures children's plush toys and incurred the following during the process: (The following are within one month of production with 980 total manufactured plush toys). P 150,000 for materials such as cloth, pile textiles and stuffing materials P 10,000 for threads and accessories P 12,000 building rental P 45,000 salaries of 5 factory workers P 10,000 security guard salary P 5,500 depreciation of machines and equipment What is the amount of Direct Material? P160,000 P150,000 P170,000 P10,000 What is the percentage of mark-up used if the selling price is P499.00? 111% 69% 53% 104% What is the selling price if the mark up is 75%? P420.00 P429.00 P592.00 P415.00
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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