At the end of August, Ingram Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 500 units. The following data relate to these two jobs: On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $24 per unit and 1,000 units for Job 42 at $24 per unit. During August, Ingram Company accumulated 200 hours of direct labor costs on Job 40 and 400 hours on Job 42. The total direct labor was incurred at a rate of $22 per direct labor hour for Job 40 and $16 per direct labor hour for Job 42. The predetermined factory overhead rate is $10.00 per direct labor hour. a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August. Job 40 $______ Job 42 $______ b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent. Job 40 $______ Job 42 $______
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.
At the end of August, Ingram Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 500 units.
The following data relate to these two jobs:
On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $24 per unit and 1,000 units for Job 42 at $24 per unit.
During August, Ingram Company accumulated 200 hours of direct labor costs on Job 40 and 400 hours on Job 42. The total direct labor was incurred at a rate of $22 per direct labor hour for Job 40 and $16 per direct labor hour for Job 42.
The predetermined factory
a. Determine the balance on the
| Job 40 | $______ |
| Job 42 | $______ |
b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.
| Job 40 | $______ |
| Job 42 | $______ |
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