INSTRUCTIONS: Create a pro-forma income statement based on the given problem Supply the given items listed according to whether it is under the cost of service, service income or operating expense. Supposed you are the one designated to prepare the annual income statement. Create a pro-forma income statement based on the given details below. The annual census for the year 2022 are as follows: Pregnancy Test-10,000 (Php 175 each) Syringe- 125 boxes (Php 250 each) HbsAg-15,000 (Php 225 each) WITH 45% TAX Fecalysis-23,000 (Php 80 each) Internet- Php 10,000 Centrifuge Maintenance-Php 80,000 Specimen container- 185 packs (Php 65 each) Salaries and Wages-Php 25,000 Electricity Bill-Php 25,000
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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