JPE Corporation has a job order cost system. JPE applies overhead to production at a predetermined overhead rate of 90% based on the direct labor cost. Job # 123, the only job still in process at the end of November 2020, has been charged with factory overhead of P2,250. The following debits (credits) appeared in the general ledger account work-in-process for the month of November: November 1 balance P12,000 November 30 direct materials 40,000 November 30 direct labor 30,000 November 30 factory overhead 27,000 November 30 to finished goods (100,000) What is the amount of direct materials charged to Job # 123 as at the end of November 2020? Select one: P2,500 P4,250 P2,250 P9,000
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.
JPE Corporation has a
November 1 balance P12,000
November 30 direct materials 40,000
November 30 direct labor 30,000
November 30 factory overhead 27,000
November 30 to finished goods (100,000)
What is the amount of direct materials charged to Job # 123 as at the end of November 2020?
Select one:
- P2,500
- P4,250
- P2,250
- P9,000
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