Your friend, Suzie Chang, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow. Factory rent $ 3,140 Company advertising 1,080 Wages paid to assembly workers 31,800 Depreciation for salespersons’ vehicles 2,140 Screws 585 Utilities for factory 890 Assembly supervisor’s salary 3,510 Sandpaper 190 President’s salary 5,050 Plastic tubing 4,200 Paint 250 Sales commissions 1,310 Factory insurance 1,150 Depreciation on cutting machines 2,020 Wages paid to painters 8,300 Assume that Suzie Chang has decided to begin production of her outdoor children’s toy. Required: 3. Determine the total cost for each of the following:
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.
Your friend, Suzie Chang, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow.
| Factory rent | $ 3,140 |
|---|---|
| Company advertising | 1,080 |
| Wages paid to assembly workers | 31,800 |
| 2,140 | |
| Screws | 585 |
| Utilities for factory | 890 |
| Assembly supervisor’s salary | 3,510 |
| Sandpaper | 190 |
| President’s salary | 5,050 |
| Plastic tubing | 4,200 |
| Paint | 250 |
| Sales commissions | 1,310 |
| Factory insurance | 1,150 |
| Depreciation on cutting machines | 2,020 |
| Wages paid to painters | 8,300 |
Assume that Suzie Chang has decided to begin production of her outdoor children’s toy.
Required:
3. Determine the total cost for each of the following:
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