Toan Incorporated uses a job-order costing system and its total manufacturing overhead applied always equals its total manufacturing overhead. In September the company completed job S80M that consisted of 40,000 units of one of the company's standard products. No other jobs were in process, completed, or sold during the month. The job cost sheet for Job S80M shows the following costs: Beginning balance $ 236,700 Direct materials $ 715,500 Direct labor cost $ 668,700 Manufacturing overhead cost applied $ 779,100 During the month, 20,000 completed units from job S80M were sold. The cost of goods sold for September is closest to?
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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