Information Direct Materials Cost (food) Direct Labor Cost Labor Hours Direct Materials Direct Labor Actual Overhead Total Job Cost Date $54,200 $43,600 3,050 The company applies overhead at a rate of $17.50 per labor hour. It completed all of its jobs in November. Total revenue for the three jobs amounted to $396,600. The allocated overhead for the month was $146,800, of which $122,000 should be credited to accounts payable and $40,400 should be credited to Accumulated Depreciation. 1. Determine the costs that should be assigned to each of the jobs. State University 54,200✔ 43,600✔ 41,923 X 139,723 X State University Manufacturing Overhead X T X X X Description Cost of Goods Sold On-the-Go Home Manufacturing Overhead $34,800 $40,000 3,630 34,800✔ 40,000✓✔ On-the-Go Home 49,896 X 124,696 X Debit $81,300 $55,900 4,000 Precious Pre- school 40,100✔ 81,300✔ 55,900✔ Precious Pre- school 54,981 X 192,181 X 2. Do the adjustment for overallocated or underallocated manufacturing overhead. TOTAL Credit 170,300 ✓ 139,500✔ 146,800 X 456,600 X 40,100✔
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.
Kapoor Catering Co. uses a
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