Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs. 2 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs Questions: a) Calculate the raw material & factory supplies used by Shades of the Caribbean b) What is the total manufacturing overhead cost incurred by Shades of the Caribbean during the period? c) Determine the prime cost & conversion cost of the product manufactured
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.
1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.
2 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs
Questions:
a) Calculate the raw material & factory supplies used by Shades of the Caribbean
b) What is the total manufacturing overhead cost incurred by Shades of the Caribbean during the
period?
c) Determine the prime cost & conversion cost of the product manufactured
d) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2018, clearly
showing total
e) Prepare an income statement for the year ended June 30, 2018, clearly showing the calculation of
Cost of Goods sold. List the non-production
f) Given that the company manufactured 1,600 sun-glasses, compute the company’s unit product cost
for the year.
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