(ii) (iii) (iv) (v) (vi) Factory overhead 50% Rs.21, 600 Received during the month 80,000 units at a total cost of Rs.400000 Expenses incurred during the month Additional materials Rs. 158,000 Labour Rs. 223700 Factory overheads Rs. 180400 Closing w-i-p 4000 units Degree of completion Materials 90 % Labour and Overheads 30% Units scrapped 4000 units Degree of completion materials labour and overheads 100% Normal loss 5% of current input +opening w-i-p Scrap value per unit Rs.5 Prepare Process I account using FIFO method
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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