rom the following particulars prepare a cost sheet showing total cost per tonne for the period ended 31 March 2019. Raw materials 33000 Director’s fees 2000 Productive wages 35000 factory cleaning 500 Direct Expenses 3000 office expenses 200 Unproductive wages10500 Estimating 800 Factory rent and taxes 7500 Factory stationary 750 Factory lighting 2200 office stationery 900 Factory heating 1500 Factory insurance 1100 Motive Power 4400 Office insurance 500 Haulage 3000 Legal Expenses 400 Depreciation of : Rent of warehouse 300 Plant and machinery 2000 maintenance of delivery vans 700 Office building 1000 bank charges 50 Delivery vans 200 commissions on sales 1500 Bad debts 100 Loose tools written off 600 Advertising 300 Rent and taxes(office) 500 Sales department salaries1500 water supply 1200 The total output for the period has been 10000 tonnes.
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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