Classic Tile Company makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 3,500 tiles; each tile sells for $21. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 3,500 units at 7 per unit Specialty paint: 10 quarts at $8 per quart High gloss glaze: 6 quarts at $22 per quart Labor time records show the following employees worked on Job #266: Alice Cooper: 20 hours at $29 per hour Matthew Kline: 26 hours at $17 per hour Classic Tile Company allocates manufacturing overhead at a rate of $32 per direct labor hour. What is the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job #266's job cost record?
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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