Required information [The following information applies to the questions displayed below.] Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 $ 40,000 14,000 7,000 $ 28,000 Direct materials used (in March) Direct labor used (in March) Overhead applied (March) Costs during April 21,000 10,500 Direct materials used $ 110,000 137,000 101,000 220,000 151,000 Direct labor used 100,000 Overhead applied Finished Finished Status on April 30 In process (sold) (unsold) Additional Information
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.
![Required information
[The following information applies to the questions displayed below.]
Marco Company shows the following costs for three jobs worked on in April.
Job 306
Job 307
Job 308
Balances on March 31
Direct materials used (in March)
Direct labor used (in March)
Overhead applied (March)
Costs during April
Direct materials used
Direct labor used
Overhead applied
$ 28,000
21,000
10,500
$ 40,000
14,000
7,000
137,000
101,000
220,000
151,000
$ 110,000
100,000
Finished
Finished
Status on April 30
In procesS
(sold)
(unsold)
Additional Information
a. Raw Materials Inventory has a March 31 balance of $80000.
b. Raw materials purchases in April are $520,000 and total factory payroll cost in April is $372.000.
c. Actual overhead costs incurred in April are indirect materials, $54,000; indirect labor, $20,000; factory rent, $34,0003;
factory utilities, $22,000; and factory equipment depreciation, $56.000,
d. Predetermined overhead rate is 50% of direct labor cost.
e. Job 306 is sold for $670,000 cash in April.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe545fd09-eb77-4890-bcfb-29db8d122cdd%2Ff7c8992c-6ea9-4bb3-8e23-248e661028ba%2Fucgg8qc_processed.jpeg&w=3840&q=75)
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