(LO 7-3) 7-46. Applying Overhead Using a Predetermined Rate Pepper Products uses a job costing system. The company applies manufacturing overhead using a predetermined rate based on direct materials. The following debits (credits) appeared in Work-in- Process for April. April 1 Balance For the month Direct materials For the month Direct labor For the month Manufacturing overhead For the month To finished goods ??? $37,600 41,800 90,240 (171,000) Job 1947, the only job still in production at the end of April, has been charged $4,600 in direct materials cost and $5,100 in direct labor cost. Required What was the beginning balance in Work-in-Process?
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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