Current Attempt in Progress Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all tases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eg. 5,275.) Case A Case B Direct materials used 2$ (a) $86,500 Direct labor 56,000 142,700 Manufacturing overhead applied 42,000 (d) Total manufacturing costs 149,750 (e) Work in process 1/1/20 (b) 25,200 Total cost of work in process 207,500 (f) Work in process 12/31/20 (c) 13,800 Cost of goods manufactured 199,300 (g) eTextbook and Media Assistance Used
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.
Cost of goods sold (COGS) indicates the cost incurred by the corporation for making product ready to be sold in the market.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
