1.Sophie. Company prints custom training material forcorporations. The business was started January 1, 2014. The company uses a normal-costing system. It hastwo direct cost pools, materials and labor, and one indirect cost pool, overhead. Overhead is charged toprinting jobs on the basis of Machine hours. The following information is available for 2014. Budgeted direct labor costs Budgeted overhead costs . Budgeted direct labor Hour Budgeted machine Hours Costs of actual material used Actual direct labor costs (29,500 Hrs)... | Actual overhead costs $225,000 „$315,000 31,500 63,000 ..$148,500 „$213,500 „$302,000 Actual machine Hours . 30000 There were two jobs in process on December 31, 2014: Job 11 and Job 12. Costs added to each job as of December 31 are as follows: Direct materials Direct labor MOH Applied Job 11 $4,870 $5,100 $6,800 $7,030 Job 12 $5,910 $9,290 Boris.Company has no finished goods inventories because all printing jobs are transferred to cost of goodssold when completed.
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.
Step by step
Solved in 2 steps
