Opening stock of work in progress is 7500, and closing stock of Work in progress is 10000 OMR,Opening stock of finished goods is 20000, and closing stock of finished goods is 13750 OMR, Indirect factory labor is 5000 OMR Raw Material Consumed is 5000 OMR, Direct labor is 28000 OMR, Direct expenses is 38000 OMR, Factory Maintenance 39000 OMR Insurance Expenses—Factory 4800 Factory superintendence salary 50000 OMR, Power and heat—factory 19400 OMR Calculate the cost of production a. None of These b. 159700 OMR c. 189200 OMR d. 195700 OMR
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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