The related data of Ivian Company: Ending Beginning Raw materials P100,200 P200,300 Work in process 300,400 355,500 Finished goods 285,700 312,700 The Cost of goods sold is P1,317,200. Direct materials used are P625,700 while factory overhead is applied at 50% of the direct materials used. What has the amount of the direct labor cost?
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.
The related data of Ivian Company:
Ending Beginning
Raw materials P100,200 P200,300
Work in process 300,400 355,500
Finished goods 285,700 312,700
The Cost of goods sold is P1,317,200.
Direct materials used are P625,700 while factory
What has the amount of the direct labor cost?
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