Marigold Company purchases $54,800 of direct raw materials and it incurs $63,600 of direct factory labor costs. Supporting records show that (a) the Assembly Department used $29,700 of direct raw materials and $42.900 of direct factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Record the assignment of overhead to the Assembly and Finishing Departments using the following format. Assume the balance in Manufacturing Overhead was $109,760 prior to assignment. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45)) Balance Assigning Overhead Manufacturing Costs Raw Materials Inventory $ Factory Labor $ Manufacturing Overhead. Work in Pi Assembly $
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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