Vernon Manufacturing Company produced 2,300 units of inventory in January, Year 2. It expects to produce an additional 9,700 units during the remaining 11 months of the year. In other words, total production for year 2 is estimated to be 12,000 units. Direct materials and direct labor costs are $70 and $70 per unit, respectively. Vernon expects to incur the following manufacturing overhead costs during the year 2 accounting period. Production supplies Supervisor salary. Depreciation on equipment Utilities Rental fee on manufacturing facilities. $ 6,400 186,000 129,000 33,000 239,600
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.
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
