The following cost data relate to the manufacturing activities of Black Company during the just completed year: Costs incurred: Purchases of raw materials ₱32,000 Direct labor cost ₱40,000 Inventories: Raw materials, beginning ₱8,000 Raw materials, ending ₱7,000 Work in process, beginning ₱6,000 Work in process, ending ₱7,500 The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was ₱5 per machine-hour; a total of 10,000 machine-hours was recorded for the year. Actual manufacturing overhead cost incurred during the year amount to ₱48,000. Required: 1.Prepare a schedule of cost of goods manufactured for the year. https://t.co/4vRYRm4574 the overhead cost overapplied or underapplied?
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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