Larry's Lawn Services provides custom landscaping for homes and businesses and uses job order costing to capture the cost of its landscaping jobs. There are no jobs in process at the beginning of May. Listed below are data concerning the three landscaping jobs conducted during May. Direct materials Landscaper labor costs Landscaper hours Cost Southside $ Southside $4,940 $5,451 $ 79 Overhead costs are applied to jobs on the basis of landscaper hours, and the predetermined overhead rate is $62 per landscaper hour. The Southside job is the only incomplete job at the end of May. Actual overhead for the month was $16,512. Determine the cost of each job. Oceanview Oceanview $7,880 $6,279 91 Rocky Heights $6,910 $6,279 Rocky Heights $ 91
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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