applies alaries and Wages Payable perating Overhead Service Contracts in Process Cost of Completed Service Contracts 2. Cost data for the month of March follow. 1. Purchased supplies on account $2,900. 3. Law Firm Accounts 4. 5. 6. Manufacturing Firm Accounts Raw Materials Factory Wages Payable Manufacturing Overhead Work in Process Cost of Goods Sold Issued supplies $1,900 (60 % direct and 40 % indirect). Assigned labor costs based on time cards for the month which indicated labor costs of $75,000 (80% direct and 20% indirect). Operating overhead costs incurred for cash totaled $45,300. Operating overhead is applied at a rate of 90% of direct labor cost. Work completed totaled $83,200.

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 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 …

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 compari…