INTEGRITY CORP uses a job-order costing. On Jan 31, only Job 101 was the only job in process with an accumulated cost of 9,000 (Direct materials is 4,000 and applied overhead of 3,000). Factory overhead is applied based on direct labor cost. On Jan 1, only Job 100 is still in process with a total cost of 5,000. During January, Job 101, Job 102, Job 103, Job 104, Job 105, Job 106, Job 107, and Job 108 were put into process by the company. The total Raw materials purchased is 120,000. Raw materials increased by 9,000. Total direct labor cost, net of withholding tax of 10,000, was 100,000. The actual overhead incurred includes indirect materials of 5,000, indirect labor of P5,000 and other overhead costs amounted to 153,000. How much is the total manufacturing cost?
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.
INTEGRITY CORP uses a
How much is the total
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
