Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and in the labor skill required. Data for the Campus Plant fo he third quarter follow. Units produced Machine-hours Direct labor-hours Standard 24,000 Enhanced Total 14,400 18,000 Direct materials costs Direct labor costs $ 480,000 288,000 8,000 9,600 18,000 $ 720,000 32,000 24,000 36,000 $ 1,200,000 612,000 900,000 864,000 $ 2,964,000 Manufacturing overhead Total costs Required: a. Compute the individual product costs per unit assuming that Redfern Audio uses direct labor costs to allocate overhead to the
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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