Hill Company uses job-order costing. At the end of the month, the following data was gathered: Job # Total Cost Complete? Sold? 803 $611 yes yes 804 423 yes no 805 805 no no 806 682 yes yes 807 525 yes no 808 250 no no 809 440 yes yes 810 773 yes no 811 267 no no 812 341 no no Hill's selling price is cost plus 50% for each of its products. What is the total amount of Finished Goods? a. $1,721 b. $2,230 c. $1,700 d. $1,860 e. $2,163
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.
|
Job # |
Total Cost |
Complete? |
Sold? |
|
803 |
$611 |
yes |
yes |
|
804 |
423 |
yes |
no |
|
805 |
805 |
no |
no |
|
806 |
682 |
yes |
yes |
|
807 |
525 |
yes |
no |
|
808 |
250 |
no |
no |
|
809 |
440 |
yes |
yes |
|
810 |
773 |
yes |
no |
|
811 |
267 |
no |
no |
|
812 |
341 |
no |
no |
Hill's selling price is cost plus 50% for each of its products.
What is the total amount of Finished Goods?
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