On March 1, Sangvikar Company's Work-In-Process inventory consisted of two jobs with the following costs: Direct materials Direct labor Applied overhead Direct materials Direct labor $4,940 Job 101 During March, two more jobs were started. Below is the information on costs added to the fou jobs during the month. $15,880 $1,200 1,500 900 $10,340 Job 102 Job 101 $500 800 $2,400 1,200 1,800 Job 102 $1,000 600 Job 103 $1,400 2,000 Jobs 101 and 103 were completed; On March 31, Job 101 were sold at cost plus 40%. Assume that overhead is applied on the basis of 80% of direct labor cost during March regardles of how overhead was assigned in the last period. What would be the ending balance of Work-l Process as of March 31? Job 104 $ 700 1,200
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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