. Care Corp. uses a job order costing sytem. It has three production departments, X, Y, and Z. The Manufacturing cost budget for May is presented in Table 1. For Job No. 0198 which was completed in May, direct materials cost was P75,000 and direct labor cost are presented in Table 2. The Corporation applies manufacturing overhead to each job order on the basis of direct labor cost, using departmental rates predetermined at the beginning og the year based on the manufacturing cost budget.What is the total manufacturing cost of Job No. 0198 which was completed in May?
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.
4. Care Corp. uses a job order costing sytem. It has three production departments, X, Y, and Z. The
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