1. XYZ Company is a multinational company which exports ladies dresses to European countries. For the month of January, the total ordered quantity amounts to 14,400 pieces and lead time of 5 days is given to the company to finish the goods. Based on the time study conducted by the Senior Industrial Engineer, the standard time for this particular style of ladies dress is 5.0 mins/piece. Being an Industrial Engineer of the same plant, you were given the task to provide your superior of the following information given the additional data below: Salary per person = 400.00/day Working time = 7.5 hours/day Material Cost = 10,000.00 Miscellaneous Cost = 5,000.00 REQUIRED: Compute for the Production Cost
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.
1. XYZ Company is a multinational company which exports ladies dresses to European countries. For the month of January, the total ordered quantity amounts to 14,400 pieces and lead time of 5 days is given to the company to finish the goods. Based on the time study conducted by the Senior Industrial Engineer, the standard time for this particular style of ladies dress is 5.0 mins/piece. Being an Industrial Engineer of the same plant, you were given the task to provide your superior of the following information given the additional data below:
Salary per person = 400.00/day
Working time = 7.5 hours/day
Material Cost = 10,000.00
Miscellaneous Cost = 5,000.00
REQUIRED: Compute for the Production Cost
2. GIVEN:
WARRANTY COST = P 30,000.00
DEVELOPMENT COST = 40,000.00
PRODUCTION COST = 60,000.00
COMPUTE FOR TOTAL COST
Step by step
Solved in 2 steps with 6 images
