Heurion Company is a job-order costing firm that uses a plant-wide overhead rate based on direct labor hours. Estimated information for the year follows: Overhead = S789,000 Direct labor hours = 100,000 Data for the jobs worked in July follows: Jobs 741 742 743 744 745 Balance, July 1 Direct materials $25,500.00 $ 39,800.00 $14,450.00 $ 13,600.00 S 8,420.00 Direct labor cost $61,300.00 $48,500.00 $28,700.00 $ 24,500.00 $21,300.00 Direct labor hours $29,870.00 $55,215.00 $27,880.00 $ 4000 3400 1980 1600 1400 By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process. Required: Computdl for the cost of work-in-process as of July 31.
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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