Tolkien Company started its operation on November 1 with no beginning inventories. It started two jobs during July-Job P and Job Q Job P was completed and sold by the end of November. Job Q was completed but was not sold by the end of November. The company uses a plant-wide predetermined overhead rate based on direct labor-hours (DLHs) and applies MOH costs based on the actual DLHs. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of November): Estimated total fixed manufacturing overhead (MOH) Estimated variable manufacturing overhead cost per DLH Total actual manufacturing overhead costs incurred Direct materials Direct labor cost Estimated DLHs Actual DLHs worked $ $ 14 What was the estimated total FIXED MOH? A. S 12,987 B. S 17,316 CS 12,870 11,895 D. S E None of the above Job P 17,500 43,200 The ending inventory balance of Work-in-process: The ending inventory balance Finished Goods Inventory: 2,700 2,400 S S Job Q 9,300 11,700 630 650 $ $ $ $ 1.30 170,000 Total 26,800 54,900 3,330 3,050 $0 $24,380
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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