Water Pipe Manufacturing completes job #727 on January 10. The job used 45 direct labor hours and 40 machine hours. The job consumed P3,200 worth of materials. The average direct labor rate is P70 per hour, and the company uses the predetermined overhead rate of 8.50 per direct labor hour. Compute for the direct labor, applied overhead, and total cost of job #727.
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.
Water Pipe Manufacturing completes job #727 on January 10. The job used 45 direct labor hours and 40 machine hours. The job consumed P3,200 worth of materials. The average direct labor rate is P70 per hour, and the company uses the predetermined
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