47. SlayLang Company employs a job order costing system. Only three jobs, #105, #106 and #107 were worked during May and June, 2020. Job #105 was completed June 10; the other two jobs were still in production on June 30. Job cost sheets on the three jobs follow: JOB COST SHEET #105 May costs incurred DM P16,500 DL P13,000 OH P20,800 June costs incurred DM - DL P4,000 OH ? JOB COST SHEET #106 May costs incurred DM P 9,300 DL P 7,000 OH P11,200 June costs incurred DM P8,200 DL P6,000 OH ? JOB COST SHEET #107 May costs incurred DM - DL - OH - June costs incurred DM P21,300 DL P10,000 OH ? The following additional information is available: Manufacturing overhead is assigned to jobs on the basis of direct labor cost. Indirect materials used during June totaled P4,000 Indirect labor cost for June totaled P8,000 Various Manufacturing overhead incurred during June was P19,000 Balances in the inventory accounts at May 31 were as follows: Raw Materials P40,000 Work in Process ? Finished Goods 85,000 The overhead resulted to a variance of Group of answer choices I refuse to answer. P3,000 underapplied P1,000 underapplied P3,000 overapplied P1,000 overapplied
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.
47.
SlayLang Company employs a
JOB COST SHEET #105
May costs incurred
DM P16,500
DL P13,000
OH P20,800
June costs incurred
DM -
DL P4,000
OH ?
JOB COST SHEET #106
May costs incurred
DM P 9,300
DL P 7,000
OH P11,200
June costs incurred
DM P8,200
DL P6,000
OH ?
JOB COST SHEET #107
May costs incurred
DM -
DL -
OH -
June costs incurred
DM P21,300
DL P10,000
OH ?
The following additional information is available:
- Manufacturing
overhead is assigned to jobs on the basis of direct labor cost. - Indirect materials used during June totaled P4,000
- Indirect labor cost for June totaled P8,000
- Various Manufacturing overhead incurred during June was P19,000
- Balances in the inventory accounts at May 31 were as follows:
Raw Materials P40,000
Work in Process ?
Finished Goods 85,000
The overhead resulted to a variance of
Group of answer choices
- I refuse to answer.
- P3,000 underapplied
- P1,000 underapplied
- P3,000 overapplied
- P1,000 overapplied
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