Sequential Method Belami Company manufactures shampoo and hair conditioner, with each product manufactured in separate departments. Three support departmen departments are as follows: Overhead Square feet Machine hours Purchase orders Support Departments Allocation ratios: Power Purchasing Shampoo $150,000 $146,000 3,000 9,600 8,400 8,000 24,000 60 120 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-se The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of Required: 1. Allocate the overhead costs to the producing departments using the sequential method. Carry out allocation ratios to four decimal places. Use the zero, enter "0". $94,000 3,000 General Factory $430,000 20 Power 1,403 Producing Departments 40 1,345 7 General Factory Conditioner $170,000 Purchasing Shampoo Conditioner
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.
Step by step
Solved in 4 steps