Managers at X company think machine hours is the best activity base for manufacturing overhead. The annual estimated overhead costs was $900,000. The annual estimated machine hours were 30,000. The company used 60 hours of processing on Job No.102 during the period and incurred overhead costs totaling $1,030,000. How much overhead should be applied to Job No.102? * $2,040 $1,800 $18,000 None of the above The journal entry to record the completion of Job No.114 at a cost of $26,000 would include: A credit to Work in Process Inventory O $26,000 and a debit to Finished Goods Inventory $26,000 A debit to Work in Process Inventory $26,000 and a credit to Finished Goods Inventory $26,000 A credit to Work in Process Inventory $26,000 and a cre Finished Goods Inventory $26,000
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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