Remis Furniture manufactures wood furniture. The company report the following costs for January 2018: RM Wood 230,000 Nails and glue 12,000 Wood-preserving stain 9,000 Depreciation on saws 5,000 Depreciation on delivery truck 2,200 Assembly line worker’s wages 56,000 Salespersons auto lease 1,400 Indirect manufacturing labor 39,000 REQUIRED: Assuming the company did not use predetermined overhead rate and there are no opening and ending balances in the raw material and work-in-process accounts, calculate the manufacturing overhead amount that is transferred to the work-in-process account during the year. Determine the manufacturing cost for January 2018
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.
Remis Furniture manufactures wood furniture. The company report the following costs for January 2018:
RM
Wood 230,000
Nails and glue 12,000
Wood-preserving stain 9,000
Depreciation on delivery truck 2,200
Assembly line worker’s wages 56,000
Salespersons auto lease 1,400
Indirect manufacturing labor 39,000
REQUIRED:
- Assuming the company did not use predetermined
overhead rate and there are no opening and ending balances in the raw material and work-in-process accounts, calculate the manufacturing overhead amount that is transferred to the work-in-process account during the year.
Determine the
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