Megco Inc.uses the Job Cost System to value inventory and cost of goods sold. During the month of Feb. the following jobs were started and costs incurred: JOB MATL. COST LABOR COST OVER-HEAD TOTAL 101 2,000 3,000 10,000 15,000 102 3,000 4,500 12,000 19,500 103 1,100 3,000 6,000 10,100 104 700 1,200 3,000 4,900 105 500 3,500 6,000 10,000 Jobs 101,102 and 104 were completed during the month. Jobs 101 and 104 were sold for a total of $30,000. + a. Show in total how the jobs cost moved through the accounts below and provide the ending balance in each account.
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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