plete Labor (20% incomplete) Overhead (20% Labor P100 per P62,500 Materials, cans (? hour complete P18,750 Labor (75% incomplete) Overhead (75% Overhead incomplete) Started during the month P2,284,0 Transferred to Shipping department during the month incomplete) 21,000 gallons 20,000 gallons Cost added Materials, chemicals 00 Materials, Cans Labor (P100 per hour) Overhead P70,000 P350,000 P105,000 Production begins with the blending of various chemicals, which are added at the beginning of the process when the mixtures reach the 90% stage of completion. The gallon cans were transferred to the shipping department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Overhead is allocated on the basis of direct lab
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.
The following date were provided by Madilim Co.: WIP, beg WIP, beg 4,000 WIP, end gallons P456,000 Materials, chemicals (? complete) Materials, Materials, chemicals (100% complete) chemicals Materials, cans (? complete Labor (20% incomplete)
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