Problem - Job Order Costing Julia Company makes a specialty product to customer specifications. To accumulate cost Julia Company uses job-order costing. Manufacturing overhead is applied to production based on a predetermined rate of 75% of direct material cost. Any over-or underapplied overhead is closed to the cost of goods sold account at the end of each month. Additional information is available as follows: Cost Added in November Balance Direct Direct Materials $1,930 Job Name 10/31/2021 $9,800| Labor Fillory $900 Brakebills 6,780 5,600 2,100 Wellspring 9,300 2,780 1,870 Blackspire 5,670 7,100 1,560 Neitherlands 5,000 1,370 Atlantis 2,800 1,800 Actual Manufacturing OH for November was $31,450 At the end of November Jobs Fillory, Brakebills, Wellspring and Neitherlands were finished. Jobs Fillory, Brakebills, and Wellspring had been delivered to the customer. REQUIRED: 1. What is the ending balance in Work in process for November 30? 2. What is the ending balance in Finished Goods for November 30? 3. What is the total cost of goods manufactured in November 30?
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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