Que Co. is a print shop that produces jobs to customer specifications. During January 2017, Job #305 was worked on and the following information is available: Direct material used P2,500 Direct labor hours worked 15 Machine time used 6 Direct labor rate per hour P7 Overhead application rate per hour of machine time P18 Required: a.total cost of Job #305 for January
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.
Que Co. is a print shop that produces jobs to customer specifications. During January 2017,
Job #305 was worked on and the following information is available:
Direct material used P2,500
Direct labor hours worked 15
Machine time used 6
Direct labor rate per hour P7
Overhead application rate per hour of machine time P18
Required:
a.total cost of Job #305 for January
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