Popeye Company is a metal and wood cutting manufacturer, selling products to the home construction market. Consider the following data for the month of October, 2016. Sandpaper Material handling costs 5,000 1,75,000 Lubricants and coolants 12,500 Miscellaneous indirect manufacturing labour Direct manufacturing labour Direct materials (01-10-16) Direct materials (31-10-16) Finished Goods (01-10-16) Finished Goods (31-10-16) Work in progress (01-10-16) Work in progress (31-10-16) Plant leasing costs Depreciation on plant equipment Property taxes on plant equipment Fire insurance on plant equipment Direct materials purchased 1,00,000 7,50,000 1,00,000 1,25,000 2,50,000 3,75,000 25,000 35,000 1,35,000 90,000 10,000 7,500 11,50,000 34,00,000 Sales revenues Marketing promotions Marketing salaries 1,50,000 2,50,000 Distribution costs 1,75,000 Customer service costs 2,50,000 Prepare Cost sheet and find out the profit for the month of October 2016.
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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