The following information is available from the records of Diamond Cut, Inc.: Direct Materials-Assembly Department $10,000 Direct Materials-Finishing Department 15,000 Direct Labor-Assembly Department 11,000 Direct Labor-Finishing Department 20,000 Applied Overhead-Assembly Department 11,000 Applied Overhead-Finishing Department 20,000 Actual Overhead-Assembly Department 12,500 Actual Overhead-Finishing Department 17,500 What are the "total costs to account for" in the Assembly Department? a.$32,000 b.$21,000 c.$10,000 d.$44,500
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.
| Direct Materials-Assembly Department | $10,000 |
| Direct Materials-Finishing Department | 15,000 |
| Direct Labor-Assembly Department | 11,000 |
| Direct Labor-Finishing Department | 20,000 |
| Applied Overhead-Assembly Department | 11,000 |
| Applied Overhead-Finishing Department | 20,000 |
| Actual Overhead-Assembly Department | 12,500 |
| Actual Overhead-Finishing Department | 17,500 |
What are the "total costs to account for" in the Assembly Department?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
