ustries produces a single product at its Roosevelt facility. The product has two main inputs, metal and labor, with additional costs being included in manufacturing overhead. The plant carries neither work-in-process nor finished goods inventories. Information from the previous four quarters of production follows: Q1 Q2 Q3 Q4 Metal input (pounds) 194,000 210,000 240,000 230,000 Labor input (hours)
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.
Terrell Industries produces a single product at its Roosevelt facility. The product has two main inputs, metal and labor, with additional costs being included in manufacturing
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Metal input (pounds) | 194,000 | 210,000 | 240,000 | 230,000 |
| Labor input (hours) | 9,700 | 10,560 | 12,500 | 11,500 |
| Sales (pounds) | 164,900 | 184,800 | 204,000 | 190,900 |
| Average price of metal per pound | $ 0.62 | $ 0.66 | $ 0.70 | $ 0.65 |
| Average wage rate per hour | 32.00 | 34.00 | 28.00 | 30.00 |
| Average sales price per pound | 6.20 | 5.95 | 6.10 | 6.00 |
| Manufacturing overhead (total) | 387,224 | 418,660 | 397,000 | 421,820 |
Required:
a. Compute the partial productivity measures for metal for the four quarters.
b. Compute the partial productivity measures for labor for the four quarters.
c. Compute the total factor productivity for the four quarters.
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