In an Assembly Shop of a Motor Cycle Factory 4 workmen A, B, C and D work lofether as a team and are paid on group piece rate. They also work individually on day rate jobs. In a 44 hour week the following hours have been spent by A. B. C and D on group piece work, viz, A-40 hours, B-40 hours, C-30 hours and D-20 hours. The balance of the time has been booked by each worker on day work jobs. Their hourly rates are : A 50 75 $ 1.00 $ 1.00 C $I per unit and the team has produced 150 units. Calculate the gross The group piece rate is weekly earnings of each workman taking into consideration that each individual is entitled to dearness allowance of s 20 per week.
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.
Step by step
Solved in 2 steps with 2 images
