MIAN Co. employes the job order cost system. Relevant data for the month just ended are as follows: (1) Work in process, beginning balanc P150,000; (2) Direct materials used during the month P300,000; (3) Direct labor cost of the month P240,000; (4) Applied factory overhead based on direct labor cost P180,000; (5) Cost of goods manufactured P752,700; (6) Ending work in process showed Job 021 which was charged with direct labor of P18,000 and Job 017 charged with overhead P14,400. The cost of direct materials charged to Job 017 was
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.
MIAN Co. employes the
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