The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments G U V 250,000 100,000 770,000 120,500 Rent 15,000 23,000 9,500 145,000 14,500 7,000 Repairs Fuel 30,000 7,500 350,000 420,000 7,000 6,000 Indirect Labor 157,500 170,000 100,000 97,500 Indirect 61,000 56,500 127,000 94,500 60,000 Materials Heat and Light 151,200 9,000 6,000 202,500 94,000 60,000 7,500 Depreciation Miscellaneous 71,300 3,000 1,500 2,000 50,500 500 500 500 Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively.
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.
![The Madalilangto Ink Company prepared the following table for the year 2019:
Production
Service Departments
Departments
H
G
U
V
770,000
14,500
30,000
7,000
100,000
Rent
250,000
15,000
7,000
Repairs
100,000
120,500
23,000
7,500
Fuel
350,000
420,000
9,500
6,000
Indirect Labor
157,500
170,000
145,000
97,500
Indirect
61,000
56,500
127,000
94,500
60,000
Materials
Heat and Light
202,500
151,200
9,000
6,000
7,500
2,000
500
Depreciation
Miscellaneous
Following is the result of the factory survey regarding service departments:
[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;
[B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
94,000
71,300
3,000
1,500
60,000
50,500
500
500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3252ed53-5805-463c-a712-67f712090935%2Fe1c0958a-3bd4-40a0-8a39-cfb60d4ad179%2F8bbzqv_processed.jpeg&w=3840&q=75)
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