During the month of June, Job 100 was started. Data are as follows: Units produced is 1,200 units; Units sold is 1,200 ; raw materials requisitioned is 8,440 (includes indirect materials of 1,000); Direct labor hours is 3,600 hours; DL rate per hour is 30; Overhead rate per DL hour is 37.50. Products are sold to customer at 125% of cost. Under the normal cost, what is the gross margin for the products sold?
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.
During the month of June, Job 100 was started. Data are as follows: Units produced is 1,200 units; Units sold is 1,200 ; raw materials requisitioned is 8,440 (includes indirect materials of 1,000); Direct labor hours is 3,600 hours; DL rate per hour is 30;
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