he Summer Corp. manufactures office tables and chairs, and accounts for cost using the job order costing system. The following data were taken from company records as of April 30 (See table below). No Jobs were in process at the beginning of the month. In April, Job Nos. 121 and 122 were completed and sold for P4,500 and P10,000, respectively. Job Nos. 124 and 125 were likewise completed during the month. Manufacturing overhead costs are applied to jobs at P1.50 per direct labor hour. Actual manufacturing overhead cost for the month amounted to P15,175. 1.Determine the amount of Cost of Goods Manufactured: 2.Refer to no.1Determine the amount of cost of goods manufactured:
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.
The Summer Corp. manufactures office tables and chairs, and accounts for cost using the
2.Refer to no.1Determine the amount of cost of goods manufactured:
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