Honda, Inc. is using Just-in-Time Production system and Backflush Cost Accounting System for the year ended December 31,2020. The following information was provided for the year 2020:a. Raw materials purchased for year 2020 totaled Php 1,000,000.00. b, Direct Labor for the year 2020 totaled Php 500,000.00. c. Actual overhead for the year 2020 totaled Php 300,000.00 and the standard overhead rate is 50% of direct labor cost. d. The production report for year 2020 showed that the Finished Goods Inventory at December 31 was Php 200,000.00 consisting of: Direct Materias 110,000.00, Direct labor 60,000.00, and Factory Overhead 30,000.00. What is the Cost of Goods Sold for the year ended December 31,2020?
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.
6. Honda, Inc. is using Just-in-Time Production system and Backflush Cost Accounting System for the year ended December 31,2020. The following information was provided for the year 2020:a. Raw materials purchased for year 2020 totaled Php 1,000,000.00. b, Direct Labor for the year 2020 totaled Php 500,000.00. c. Actual
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