rder costing system. The company has two departments through which most jobs pass. Overhead is applied using a plantwide overhead rate of $10 per direct labor hour. During the year, several jobs were completed. Data pertaining to one such job, Job 9-601, follow: Direct materials $12,000 Direct labor cost: Department A (450 hours @ $18) $8,100 Department B (120 hours @ $18) $2,160 Machine hours used: Department A 200 Department B 800 Units produced 1,000
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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Job Cost FlowsRoseler Company uses a normal job-order costing system. The company has two departments through which most jobs pass. Overhead is applied using a plantwide overhead rate of $10 per direct labor hour. During the year, several jobs were completed. Data pertaining to one such job, Job 9-601, follow:
Direct materials $12,000 Direct labor cost: Department A (450 hours @ $18) $8,100 Department B (120 hours @ $18) $2,160 Machine hours used: Department A 200 Department B 800 Units produced 1,000 Required:
1. Compute the total cost of Job 9-601.
$fill in the blank 12. Compute the per-unit
manufacturing cost for Job 9-601. Round your answer to two decimal places.
$fill in the blank 2For Requirements 3 and 4, assume that Roseler uses departmental overhead rates. In Department A, overhead is applied at the rate of $3 per direct labor hour. In Department B, overhead is applied at the rate of $7 per machine hour.
3. Compute the total cost of Job 9-601.
$fill in the blank 34. Compute the per-unit manufacturing cost for Job 9-601. Round your answer to two decimal places.
$fill in the blank 4
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