Glenmont Company is attempting to determine costs associated with various jobs. Current production records show the following information for three recent jobs: Job Job Job 101 102 103 Direct materials costs $12,000 $16,000 $24,000 Direct labor costs: Machining Dept. $3,000 $5,000 $4,000 Fabrication Dept. $8,000 $1,000 $2,000 Machine hrs. used in Machining 300 600 800 Units completed 200 300 100 Assume overhead application rates of $14 per machine hour for the Machining Department and 200% of direct labor costs for the Fabrication Department. What is the total cost of Job 103? $_________________
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.
Glenmont Company is attempting to determine costs associated with various jobs. Current production records show the following information for three recent jobs:
Job Job Job
101 102 103
Direct materials costs $12,000 $16,000 $24,000
Direct labor costs:
Machining Dept. $3,000 $5,000 $4,000
Fabrication Dept. $8,000 $1,000 $2,000
Machine hrs. used in Machining 300 600 800
Units completed 200 300 100
Assume
What is the total cost of Job 103? $_________________
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