Spock Ltd uses a job costing system. Un I had a balance of $8 600, made up as follows: Job No. 501 502 ctober Direct materials Direct Labour Overhead costs $960 $1.060 $600 $580 $2 480 $2 920 Total $4 500 $4 100 During October direct materials and direct labour costs, and direct labour hours were:
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.
![Spock Ltd uses a job costing system. On 1 October 20X1, work in process account
had a balance of $8 600, made up as follows:
Job No. Direct materials
501
$2 480
502
$2 920
Direct Labour Overhead costs
$960
$1.060
$600
$580
Job No.
501
During October direct materials and direct labour costs, and direct labour hours
were:
Direct materials
$400
$800
$6 000
Direct Labour
$2 240
$3 600
$1 920
Total
$4.500
$4 100
Required:
(a) Determine the company's predetermined overhead rate.
(b) Prepare the job cost sheet for the company.
Overhead is allocated to jobs on a direct labour hour basis. The company is
expected to operate at a volume of 40 000 direct labour hours and overhead costs is
expected to be $120 000 annually. During the month Job 501, 502 were completed
and transferred to finished goods.
代码语言
Direct labour hours
800
900
600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fef15f7a6-25d7-40a2-9077-df75f7df378b%2F798278f6-bae4-409f-9993-5f9601fa971d%2Frogei7_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)