u Technology Co. manufactures DVDS for computer software and entertainment companies. Tu uses job order costing. ,900 DVDS, Job 423, for Diorama Pictures for $1.40 sales price per DVD. Tu promised to deliver the DVDS to Diorama Pictures by November 5. Tu incurred the pllowing direct costs: Click the icon to view the costs.) A (Click the icon to view additional information.) Read the requirements. Direct materials Direct labor Manufacturing overhead allocated Labor Time Requisition Record Date Number Amount Number Amount Date Rate Amount 11-3 145% of direct 24 372 655 $ 180 labor cost 11-2 63 11-2 64 700 Overall Cost Summary 126 656 260 Direct materials 1198 11-3 74 440 Direct labor Manufacturing overhead Allocated Total Job Cost Totals 24 1,198 440 Cost per DVD
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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