Skysong Company reports the following costs and expenses in May. Factory utilities $14,200 Direct labor $63,680 Depreciation on factory equipment 11,620 Sales salaries 42,520 Depreciation on delivery trucks 3,640 Property taxes on factory building 2,300 Indirect factory labor 45,120 Repairs to office equipment 1,220 Indirect materials 74,240 Factory repairs 1,840 Direct materials used 126,880 Advertising 13,800 Factory manager’s salary 7,600 Office supplies used 2,410 From the information: Determine the total amount of manufacturing overhead. Manufacturing overhead $enter the manufacturing overhead in dollars Determine the total amount of product costs. Product costs $enter the product costs in dollars
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.
Skysong Company reports the following costs and expenses in May.
|
Factory utilities
|
$14,200 |
Direct labor
|
$63,680 | |||
|---|---|---|---|---|---|---|
|
|
11,620 |
Sales salaries
|
42,520 | |||
|
Depreciation on delivery trucks
|
3,640 |
Property taxes on factory building
|
2,300 | |||
|
Indirect factory labor
|
45,120 |
Repairs to office equipment
|
1,220 | |||
|
Indirect materials
|
74,240 |
Factory repairs
|
1,840 | |||
|
Direct materials used
|
126,880 |
Advertising
|
13,800 | |||
|
Factory manager’s salary
|
7,600 |
Office supplies used
|
2,410 |
From the information:
Determine the total amount of manufacturing
| Manufacturing overhead | $enter the manufacturing overhead in dollars |
Determine the total amount of product costs.
| Product costs | $enter the product costs in dollars |
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