ABC Company uses a job order costing system and the following information is available from the records. The company has 3 jobs in process: 101, 102 and 103. Raw materials used 150,000 Direct labor per hour 10 Overhead applied based on direct labor 150% Direct material was requisitioned as follows for each job, respectively: 20%, 25% and 30%, the balance of the requisitions were considered indirect. Direct labor hours per job are 3,000, 3,500 and 4,000, respectively. Indirect labor is P55,000. Other actual factory overhead costs totaled P57,500. a. What is the actual factory overhead b. If Job Order 103 was completed and transferred, how much is the total cost transferred to Finished goods inventory? c. How much is the work in process? d. How much is the applied factory overhead? e. if there an under or over applied overhead? How much?
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.
|
ABC Company uses a information is available from the records. The company has 3 jobs in process: 101, 102 and 103. |
|
||||||
|
Raw materials used 150,000 |
|||||||
|
Direct labor per hour 10 |
|
|
|
||||
|
|
|
|
|||||
|
Direct material was requisitioned as follows for each job, respectively: 20%, 25% and 30%, the balance of the requisitions were considered indirect. Direct labor hours per job are 3,000, 3,500 and 4,000, respectively. Indirect labor is P55,000. Other actual |
a. What is the actual factory overhead
b. If Job Order 103 was completed and transferred, how much is the total cost transferred to Finished goods inventory?
c. How much is the work in process?
d. How much is the applied factory overhead?
e. if there an under or over applied overhead? How much?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
