The following is taken from Jeddah Company's records for the current year: Direct materials used 300,000 Direct labor 100,000 Variable factory overhead 50,000 Fixed factory overhead. 80,000 Variable selling and administrative costs 40,000 Fixed selling and administrative costs 20,000 If Jeddah uses variable costing, the inventoriable cost for the year is
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 following is taken from Jeddah Company's records for the current year:
Direct materials used 300,000
Direct labor 100,000
Variable factory
Fixed factory overhead. 80,000
Variable selling and administrative costs 40,000
Fixed selling and administrative costs 20,000
If Jeddah uses variable costing, the inventoriable cost for the year is
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