Alena Corporation has a job order cost system. The following debits (credits) appeared in Work in Process for July: July 1, balance P168,500 July 31, direct materials 425,200 July 31, direct labor 379,000 July 31, factory overhead 280,000 July 31, to finished goods -989,500 The entity's predetermined rate is 80% of direct labor cost. Job no. 90 is the only job still in process at the end of July, has been charged with the overhead of P62,500. What is the amount of direct materials charged to Job 90?
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.
Alena Corporation has a
The following debits (credits) appeared in Work in Process for July:
July 1, balance P168,500
July 31, direct materials 425,200
July 31, direct labor 379,000
July 31, factory overhead 280,000
July 31, to finished goods -989,500
The entity's predetermined rate is 80% of direct labor cost.
Job no. 90 is the only job still in process at the end of July, has been charged with the overhead of P62,500.
What is the amount of direct materials charged to Job 90?
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