Petal manufactures three products, (petals, twigs, and stems) from a Joint process. The Stems 3,000 P125,000 225,000 total costs for January is P250,000. Öther information for January show: Quantity Processing cost after split-off Ultimate market value Petals 3,000 P50,000 150,000 Twigs 4,000 P75,000 275,000 23. What are the total production costs for (1) Petals, (2) Twigs, (3) Stems using the average cost method? a. (1) P137,500 (2) P200,000 (3) P225,000. b. (1) P100,000 (2) P150,000 (3) P250,000 /c. (1) P125,000 (2) P175,000 (3) P200,000 d. (1) P112,500 (2) P200,000 (3) P187,500
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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