The Comlian corporation has go through different process while manufacturing of goods and have following cost during the month of operation, Pass the Journal entries with cost accounting control Account: i. Cost of raw material consumed during the month totaled as 43000 dollars out of which material of 3000 is indirect while other is direct. ii. Factory completed the production of goods costing 75000 dollars on 29 januray2014. iii. Factory payroll for the month included 20,000 dollars of direct labor and 4000 of indirect labor ,pay checque was issued. iv. During costing at different department (Job order costing) one job completed with the cost of 1,50,0000 dollars . v. Some of the material during processing seemed to be defective and return to the supplier with amount total as 10,000.from which half is indirect and half is direct material. The supplier will pay the amount later.
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.
The Comlian corporation has go through different process while manufacturing of goods and
have following cost during the month of operation, Pass the
control Account:
i. Cost of raw material consumed during the month totaled as 43000 dollars out of which
material of 3000 is indirect while other is direct.
ii. Factory completed the production of goods costing 75000 dollars on 29 januray2014.
iii. Factory payroll for the month included 20,000 dollars of direct labor and 4000 of indirect
labor ,pay checque was issued.
iv. During costing at different department (
cost of 1,50,0000 dollars .
v. Some of the material during processing seemed to be defective and return to the supplier
with amount total as 10,000.from which half is indirect and half is direct material. The
supplier will pay the amount later.
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