Northern Company processes direct materials up to the split-off point where two products (A and B) are obtained and sold. The following information was gathered for the month of July. Units Produced 5,000 4,500 Seiling Price per Unit P 150.00 100.00 Units Sold 4,750 4,000 Products A В The cost of purchasing the direct materials and processing it up to the split-off point to yield a total of 9,500 units was P 975,000. The beginning inventories totaled 50 units for A and 25 units for B. Ending inventory amounts reflected 300 units of A and 525 units of B. July's costs per unit were the same as June. 28. What is products' A approximate gross margin percentage using the physical value method. /a. 32% а. b. 33% с. 35% d. 38%
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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