on the basis of direct labor cost. A markup of 50% is also added to the cost of production at time of sale of finished goods. On July 31st, Job 99 remained in production with direa Splenda uses normal cost system and manufacturing overhead are being applied to jobs Estimated manufacturing overhead Actual manufacturing overhead Estimated direct labor cost P 562,500 540,000 P 450,000 P 470,000 P1,680,000 Actual direct labor cost Total work in progress account (debit) Total work in progress account (credit) 1,000,000 Required: d. Compute ending work in process inventory. e. Journal entry to record sales assuming all credit sale.
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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