Roderick Company reported the following costs and expenses in May. Factory utilities P15,600 Direct labor P89,100 Depreciation on factory equipment 12,650 Sales salaries 46,400 Depreciation on delivery trucks 8,800 Property taxes on factory building 2,500 Indirect factory labor 48,900 Repairs to office equipment 2,300 Indirect materials 80,800 Factory repairs 2,000 Direct materials used 137,600 Advertising 18,000 Factory manager’s salary 13,000 Office supplies used 5,640 Requirement: Using the given information, determine the total amount of: Manufacturing overhead Product costs Period costs
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.
Roderick Company
Roderick Company reported the following costs and expenses in May.
|
Factory utilities |
P15,600 |
Direct labor |
P89,100 |
|
|
12,650 |
Sales salaries |
46,400 |
|
Depreciation on delivery trucks |
8,800 |
Property taxes on factory building |
2,500 |
|
Indirect factory labor |
48,900 |
Repairs to office equipment |
2,300 |
|
Indirect materials |
80,800 |
Factory repairs |
2,000 |
|
Direct materials used |
137,600 |
Advertising |
18,000 |
|
Factory manager’s salary |
13,000 |
Office supplies used |
5,640 |
Requirement: Using the given information, determine the total amount of:
- Manufacturing
overhead - Product costs
- Period costs
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