irect materials t materials aterials used $ 49,000 24,400 73,400 9,420 $82,820
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.
![[The following information applies to the questions displayed below.]
Information on Kwon Manufacturing's activities for its first month of operations follows:
a. Purchased $100,800 of raw materials on credit.
b. Materials requisitions show the following materials used for the month.
Job 201
Job 202
Total direct materials
Indirect materials
Total materials used
$ 49,000
24,400
73,400
9,420
$ 82,820
c. Time tickets show the following labor used for the month.
Job 201
$ 40,000
Job 202
13,400
Total direct labor
53,400
25,000
Indirect labor
Total labor used
$ 78,400
d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost.
e. Transferred Job 201 to Finished Goods Inventory.
f. Sold Job 201 for $166,160 on credit.
g. Incurred the following actual other overhead costs for the month.
Depreciation of factory equipment
$ 32,800
Rent on factory building (payable)
Factory utilities (payable)
Expired factory insurance
Total other factory overhead costs
580
880
3,800
$ 38,060
Exercise 15-8 (Algo) T-accounts for manufacturing activities LO P1, P2, P3
Post entries for transactions a through g to the T-accounts. Each of T-accounts started the month with a zero balance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b6cbbbc-4efb-4254-a5f6-936acfab38e7%2F2e482e74-bfa7-4aac-92a4-d82517c5268d%2F6gykjwj_processed.png&w=3840&q=75)
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