425 was recently completed. The following data have been recorded on its job cost sheet: Direct materials 6,190 Direct labor-hours 53 labor-hours Direct labor wage rate 19 per labor-hour Machine-hours 250 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is Rs. 18 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 425 would be:
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.
ob 425 was recently completed. The following data have been recorded on its
|
Direct materials |
6,190 |
|
Direct labor-hours |
53 labor-hours |
|
Direct labor wage rate |
19 per labor-hour |
|
Machine-hours |
250 machine-hours |
The Corporation applies manufacturing
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