Kelby's Kites uses a job order costing system and a predetermined rate based on direct labor hours. Estimated overhead for 2021 is $750,000 and estimated direct labor hours are 50,000. Job 11 was sold on 10/31. Job 10 Job 11 Job 12 Work in process, October 1 $10,000 $12,000 $0 Direct materials cost $15,000 $22,000 $8,500 Direct labor costs $12,500 $15,500 $12,500 Actual direct labor hours 150 125 Also known: • • Raw materials beginning inventory was $13,200. Purchases of raw materials for October are $65,000 . Job 10 and 11 were finished in October; Job 11 was sold on 10/31. • Finished goods beginning inventory on 10/1 was $18,000. Actual overhead for October was $5,000. Please answer the following questions: 95 1. What is the predetermined overhead rate? 2027 2. Was overhead r applic
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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