Table 1: Cost and Production Data for the ixing [Jadual 1: Data Kos dan Pengeluaran untuk Jabatan Pencampuran bagi Meil Production: Units Units in process, May 1 (100% complete materials, 75% labor and overhead) 10,000 Started during May 50,000 Units in process, May 31 (100% complete materials, 50% labor and overhead) 8,000 Costs: RM Work in process, May 1 Materials 15,000 Direct labor 20,000 Manufacturing overhead 17.560 Total costs 52,560 Cost added during May Materials 90,000 Direct labor 120,000 Manufacturing overhead 100,000 Total costs 310,000
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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