The Lee Corporation uses a job-order costing system. The following data were recorded for June: Added During June Direct Materials. Direct Labor $3,200 $3,800 $ 2,000 $ 2,200 $ 2,600 $ 2,900 June 1 Work in Job Number Process Inventory 235 236 237 238 Multiple Choice Overhead is charged to production et 80% of direct materials cost. Jobs 235, 237, end 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. Actual manufacturing overhead was equal to manufacturing overheed applied. There were no Finished Goods inventories at the beginning of June. Lee's Finished Goods inventory balance on June 30 was: 0 0 0 $12,350 $8,150 $8,910 $9,500 $ 8,500 $ 8,000 $ 2,200 $17230 $ 4,550 $ 5,050
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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