JOB-COST RECORD S116 Nov. 1, 20x1 Job Number 80 standard 12' SUPS Description Date Completed Number of Units Completed Date Started Nov. 22, 20x1 80 Direct Material Date Requisition Number Quantity Unit Price Cost 11/1 803 - EPS Foam Core 2,500 sq ft $4.00 $10,000 11/8 805 - Fiberglass/parts kit 80 units $100 $8,000 Direct Labor Date Time Card Number Hours Rate Cost Various dates Various time cards 600 $20 $12,000 Cost Summary Manufacturing Overhead Cost Item Amount Cost Driver Total direct material Application Rate $18,000 12,000 Date (Activity Base) Quantity Cost Total direct labor Total manufacturing overhead 18,000 11/30 Machine hours 2.000 $9.00 $18,000 Total cost $48,000 Unit cost $600 Shipping Summary Units Remaining Date Units Shipped in Inventory Cost Balance 11/30 60 20 $12,000
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.
Garrett Toy Company incurred the following costs in April to produce job number TB78, which consisted of 1,000 teddy bears that can walk, talk, and play cards.
Direct Material:
4/1/20x0 Requisition number 101: 400 yards of fabric at $.80 per yard
4/5/20x0 Requisition number 108: 500 cubic feet of stuffing at $.30 per cubic foot
Direct Labor:
From employee time cards for 4/1/20x0 through 4/8/20x0: 500 hours at $12 per hour
Manufacturing Overhead:
Applied on the basis of direct-labor hours at $2.00 per hour.
On April 30, 700 of the bears were shipped to a local toy store.
Required: Prepare a job-cost record using the information given above. (Use Exhibit 3–3 as a guide.)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
