Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $5,297,500; materials costs, $32 per unit. Planned production included 5,216 hours to produce 16,300 motor drives. Actual production for August was 1,900 units, and motor drives shipped amounted to 1,400 units. From the foregoing information, determine the production costs transferred to Finished Goods during August. a.$678,300 b.$499,800 c.$619,432 d.$253,769
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.
Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $5,297,500; materials costs, $32 per unit. Planned production included 5,216 hours to produce 16,300 motor drives. Actual production for August was 1,900 units, and motor drives shipped amounted to 1,400 units.
From the foregoing information, determine the production costs transferred to Finished Goods during August.
a.$678,300
b.$499,800
c.$619,432
d.$253,769
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
