Janice Corporation processes direct materials up to the split-off point, where products R and S are produced and thereafter sold. For the month just ended, the following information were made available Direct materials processed- 20,000 gallons (yield- 19,000 gallons of good product and 1,000 gallons of shrinkage) Production R 10,000 gallons 9,000 gallons Unit selling price R S P1,500 per gallon P1,000 per gallon The cost of buying 20,000 gallons of direct materials and processing up to split off point to yield a total of 19,000 gallons of good products was P19,500,000. The beginning inventories totaled 100 gallons for R and 50 gallons for S. Ending inventories amounts reflected 600 galions for R and 1,050 gallons for S. Using the volume of production as the basis for allocating joint costs, the assigned costs to R and S would be a. R, P 9,750,000 b. R, P10,550,000 and S, P8,950,000 c. R, P10,028,571.43 and S, P9,471,426.57 Jd. R, P10,263,157.89 and S, P9,236,842.11 17. and S, P9,750,000
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.
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