HNI Corporation started operations this year. As the year went on, they compiled the following nformation on jobs worked (these are the only jobs for the year): Job# 561 562 563 564 Direct Materials $1,761 $2,604 $1,464 $1,958 Direct Labor Labor hours $1,198 $1,771 $1,084 $1,175 30 44 26 32 Ending balance of Work in process account otal Sales Ending balance of Finished goods account HNI Corporation determined at the beginning of the year that $23 per Labor hour would be an ppropriate POHR. As it turns out, throughout the year, overhead incurred totaled $2,641. Over or Under applied overhead is always considered to be immaterial and necessary steps hould be taken to close the Overhead account prior to answering the questions below. Job Status Not Complete Not Complete Complete and not sold Complete and sold Make the necessary calculations to determine the following items for the year just ended (round o the nearest whole dollar/input code: 0): Ending balance of Overhead account after closing overhead Total Cost of goods sold after closing overhead Gross profit as reported on the Income Statement Over/Underapplied overhead (enter overapplied as a ositive number and underapplied as a negative number) $ $ $ Sales Price when sold $ $7,408 $10,936 $6,387 $7,855 $ $
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 order costing is used when the products are customer specific. Thus each individual job is assigned the manufacturing cost incurred on the production. Each individual cost has its own job sheet where the cost related to production is recorded.
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