Production Service Departments Departments H V 250,000 100,000 350,000 157,500 61,000 770,000 120,500 420,000 170,000 14,500 30,000 7,000 100,000 94,500 7,000 7,500 6,000 97,500 60,000 Rent 15,000 23,000 9,500 145,000 127,000 Repairs Fuel Indirect Labor Indirect 56,500 Materials Heat and Light Depreciation Miscellaneous Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively. 202,500 94,000 60,000 151,200 71,300 50,500 9,000 3,000 6,000 1,500 7,500 2,000 500 500 500
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.
Compute for the Factory
![The Madalilangto Ink Company prepared the following table for the year 2019:
Production
Service Departments
Departments
G
U
14,500
30,000
7,000
100,000
7,000
7,500
6,000
97,500
60,000
Rent
250,000
100,000
350,000
157,500
61,000
770,000
120,500
15,000
23,000
9,500
145,000
Repairs
Fuel
420,000
Indirect Labor
170,000
56,500
Indirect
127,000
94,500
Materials
Heat and Light
Depreciation
Miscellaneous
Following is the result of the factory survey regarding service departments:
[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;
[B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
202,500
94,000
60,000
151,200
71,300
50,500
9,000
3,000
6,000
1,500
7,500
2,000
500
500
500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3252ed53-5805-463c-a712-67f712090935%2Fac40444c-32a4-44ac-ab10-ff95a879f63c%2Frmbl4y_processed.jpeg&w=3840&q=75)
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