Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 48,870 Direct labor-hours 405 labor-hours Direct labor wage rate $ 13 per labor-hour Machine-hours 486 machine-hours Number of units completed 2,700 units The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $11 per machine-hour. Required: Compute the unit product cost that would appear on the job cost sheet for this job.
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.
Job 243 was recently completed. The following data have been recorded on its
| Direct materials | $ 48,870 | |
|---|---|---|
| Direct labor-hours | 405 | labor-hours |
| Direct labor wage rate | $ 13 | per labor-hour |
| Machine-hours | 486 | machine-hours |
| Number of units completed | 2,700 | units |
The company applies manufacturing
Required:
Compute the unit product cost that would appear on the job cost sheet for this job.
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