Gilford, Inc., uses a job order costing system. Costs going through the company's work in process account during June are given below. Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labor cost. Work in Process ___________________________________________________________________________________________________ Balance -0- | 95,000 Transferred out Direct materials 20,000 | Direct labor 30,000 | Manufacturing Overhead 60,000 | ____________________________________________________________________________________________________ Balance 15,000 | Only Job 105 was still in process at the end of the month. This job had been charged with P3,000 in direct materials cost. Required: Complete the following job order cost card for Job 105:
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.
Gilford, Inc., uses a job order costing system. Costs going through the company's work in process account during June are given below. Manufacturing
Work in Process
___________________________________________________________________________________________________
Balance -0- | 95,000 Transferred out
Direct materials 20,000 |
Direct labor 30,000 |
Manufacturing Overhead 60,000 |
____________________________________________________________________________________________________
Balance 15,000 |
Only Job 105 was still in process at the end of the month. This job had been charged with P3,000 in direct materials cost.
Required:
- Complete the following
job order cost card for Job 105:
Direct materials .......... P 3,000
Direct labor .............. _______
Manufacturing overhead .... _______
Total cost at June 30 .. _______
Step by step
Solved in 2 steps
