Lumos Maxima corporation manufacturers lamps and flashlights. They use a job-order cost system to accumulate their manufacturing costs, and a traditional allocation method for applying manufacturing overhead costs. The predetermined overhead rate is $16.00 per direct labor hour. During the month, White corporation worked on two different jobs. Job W-100 was completed and sold by the end of the month. Job W-200 was unfinished at the end of the period. Job W-100 Job W-200 Beginning Balance $19,400 $29,800 Direct Materials $34,200 $21,100 Direct Labor $36,000 $35,200 Actual Direct Labor Hours 8,200 6,400 What is the beginning balance of work in process at the end of the month? A. $188,500 B. $175,700 C. $220,800 D. $409,300
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.
Lumos Maxima corporation manufacturers lamps and flashlights. They use a
During the month, White corporation worked on two different jobs. Job W-100 was completed and sold by the end of the month. Job W-200 was unfinished at the end of the period.
| Job W-100 | Job W-200 | |
| Beginning Balance | $19,400 | $29,800 |
| Direct Materials | $34,200 | $21,100 |
| Direct Labor | $36,000 | $35,200 |
| Actual Direct Labor Hours | 8,200 | 6,400 |
What is the beginning balance of work in process at the end of the month?
A. $188,500
B. $175,700
C. $220,800
D. $409,300
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