ob #2333 incurred the following during production: Direct Materials $6,000 Manufacturing labor 25 hours Packaging materials $150 Packing and shipping labor 0.5 hours The following data is also available for the company: Overhead costs for the period: $45,000 Indirect Labor (machine maintenance): 4 hours The company incurs costs at the following rates: Manufacturing labor $24 per hour Auxiliary labor (maintenance, packaging, etc.) $18 per hour Overhead allocation $36 per dollar of manufacturing labor Given this information, what was the total cost of the job that was transferred from Work in Process Inventory to the Finished Goods Inventory? Select one: a. $6,750 b. $6,759 c. $6,600 d. $28,359 e. $6,760
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.
ob #2333 incurred the following during production:
| Direct Materials | $6,000 | |
| Manufacturing labor | 25 | hours |
| Packaging materials | $150 | |
| Packing and shipping labor | 0.5 | hours |
The following data is also available for the company:
| $45,000 | ||
| Indirect Labor (machine maintenance): | 4 | hours |
The company incurs costs at the following rates:
| Manufacturing labor | $24 | per hour |
| Auxiliary labor (maintenance, packaging, etc.) | $18 | per hour |
| Overhead allocation | $36 | per dollar of manufacturing labor |
Given this information, what was the total cost of the job that was transferred from Work in Process Inventory to the Finished Goods Inventory?
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