Units of production method with workings required.
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.
![A company purchased machinery for $ 200,000 on 1st January . It has an estimated useful life of 10 years and an estimated
salvage value of $ 20,000 . The firm sells the asset at the salvage value at the end of the 10th year. The machine has an
expected production of 15000 units during its useful life. Now the production pattern is as follows : Year Production 1-3
2000 units per year 4-7 1500 units per year 8-10 1000 units per year Answer the following questions using the Units of
Production Method.
Show depreciation expense year wise for all the years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fed4659fd-42c7-4750-a5a0-34b5f14c9c38%2Fc0d36073-bf89-491b-b112-95cf59ebb823%2Fb8sunng_processed.png&w=3840&q=75)
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