Sea Eagle is a kayak manufacturer. For July 2021, Sea Eagle had the following standard costs for manufacturing one ka Standards per kayak Direct materials 4 kilograms of material at $10 per kilogram Direct manufacturing labour 0.5 hour of labour at $18 per hour The following data were compiled through the accounting system regarding actual performance in July 2021: Actual output units produced 5,000 kayaks Kilograms of direct materials purchased 18,000 kilograms Direct materials purchase price per kilogram $11 16,000 kilograms Kilograms of direct materials used $36,900 Direct manufacturing labour costs 1,800 hours ctual hours of labour used $20.50 abour rate per hour
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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