Demere Corporation uses a job costing system. On January 1, Demere Corporation's work in process inventory account had a balance of $75,000. During the year, materials requisitioned for use in production amounted to $120,000, of which $82,000 represented direct materials. Factory wages for the period were $231,000, of which $219,000 were for direct labor. . Manufacturing overhead is allocated on the basis of 85% of direct labor cost. Other overhead cost incurred during the year totaled $77,000. Jobs costing $345,000 were completed during the year. The December 31 balance in the manufacturing overhead, prior to adjustment, is closest to Select one: a. $59,150 debit balance b. $52,500 debit balance c. $92,000 debit balance d. $92,000 credit balance e. $52,500 credit balance f. $59,150 credit balance
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.
Demere Corporation uses a
The December 31 balance in the manufacturing overhead, prior to adjustment, is closest to
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