Nash Company started business on 1/1/2017. The accounting period is one month. Nash uses normal job-order costing system and applies MOH based on machine hour. On 1/1/2017, Nash estimated that the MOH for the month of January is expected be $22500 and that the machine hours are expected to be 1200 hours. During the month of January, Nash received only one job (job #100). The actual costs spent on that job are $22700 of DM and $5400 of DL. In addition, Job 100 used 900 machine hours. Job 100 was completed and delivered on January 21. The shipping costs of Job 100 were $7,000. On 31/1/2017 (the end of the period), the actual MOH showed on the debit side a total amount of $21,000. Calculate the total cost of goods manufactured (CGM) of job 100 Please don't give images with solutions thanku
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.
Nash Company started business on 1/1/2017. The accounting period is one month. Nash uses normal job-order costing system and applies MOH based on machine hour. On 1/1/2017, Nash estimated that the MOH for the month of January is expected be $22500 and that the machine hours are expected to be 1200 hours.
During the month of January, Nash received only one job (job #100). The actual costs spent on that job are $22700 of DM and $5400 of DL. In addition, Job 100 used 900 machine hours.
Job 100 was completed and delivered on January 21. The shipping
On 31/1/2017 (the end of the period), the actual MOH showed on the debit side a total amount of $21,000.
Calculate the total cost of goods manufactured (CGM) of job 100
Please don't give images with solutions thanku
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