Production estimates for July for Starling Co. are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 Expected sales volume (units), July 76,000 For each unit produced, the direct materials requirements are as follows: Material A ($5 per lb.) 3.0 lbs. Material B ($18 per lb.) 0.5 lb. The number of pounds of Materials A and B required for July production is a.216,000 lbs. of A; 72,000 lbs. of B b.216,000 lbs. of A; 36,000 lbs. of B c.225,000 lbs. of A; 37,500 lbs. of B d.234,000 lbs. of A; 39,000 lbs. of B
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.
Production estimates for July for Starling Co. are as follows:
| Estimated inventory (units), July 1 | 8,500 |
| Desired inventory (units), July 31 | 10,500 |
| Expected sales volume (units), July | 76,000 |
For each unit produced, the direct materials requirements are as follows:
| Material A ($5 per lb.) | 3.0 lbs. |
| Material B ($18 per lb.) | 0.5 lb. |
The number of pounds of Materials A and B required for July production is
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