Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled S1,730,000. Information regarding resources for the month follows. Resources Supplied $ 69,000 Resources Used $ 57,000 Parts management Energy Quality inspections Long-term labor Short-term labor 105,000 86,000 52,000 42,000 143,000 320,000 130,000 139,000 16,000 105,000 106,000 65,000 54,000 220,000 320,000 220,000 Setups Materials Depreciation Marketing 163,000 45,000 143,000 Customer service Administrative 101,000 In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $59,200 on 8 outside contracts with a cost driver rate of $7,400. Required:
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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