Problem - Job Order Costing Maacah Rio Company uses job-order costing since the company makes a specialty product to customer specifications. Manufacturing overhead is applied to production based on a predetermined rate of 120% 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: Turtle 101 Salamandar567 Job.No Balance 3/31/23 Alligator987 Lizard104 Dragon303 Snake601 Actual Manufacturing OH for April was $29,125 $9,000 6,780 9,300 5,670 0 0 Cost Added in April Direct Labor Direct Materials $1,870 $800 4,000 2,300 2,680 7,400 5,000 2,800 1,870 1,560 1,370 1,800
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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