In a manufacturing process, following standards apply: Standard prices: Raw Material A – Rs 10/Kg and B – Rs 50/kg Standard Mix – 75% of A and 25% of B (By weight) Standard output – 90% of the raw material (in weight) In a particular period, actual costs, usages and output were as follows: 4400 kg of A costing Rs 46,500 1600 kgs of B costing Rs 78,500 Output was 5670 kgs of the product. The budgeted output of the period was 7200 kgs. Calculate all material variances. . In a manufacturing process, following standards apply: Standard prices: Raw Material A – Rs 10/Kg and B – Rs 50/kg Standard Mix – 75% of A and 25% of B (By weight) Standard output – 90% of the
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.
. In a manufacturing process, following standards apply:
Standard prices: Raw Material A – Rs 10/Kg and B – Rs 50/kg
Standard Mix – 75% of A and 25% of B (By weight)
Standard output – 90% of the raw material (in weight)
In a particular period, actual costs, usages and output were as follows:
4400 kg of A costing Rs 46,500
1600 kgs of B costing Rs 78,500
Output was 5670 kgs of the product.
The budgeted output of the period was 7200 kgs.
Calculate all material variances.
. In a manufacturing process, following standards apply:
Standard prices: Raw Material A – Rs 10/Kg and B – Rs 50/kg
Standard Mix – 75% of A and 25% of B (By weight)
Standard output – 90% of the raw material (in weight)
In a particular period, actual costs, usages and output were as follows:
4400 kg of A costing Rs 46,500
1600 kgs of B costing Rs 78,500
Output was 5670 kgs of the product.
The budgeted output of the period was 7200 kgs.
Calculate all material variances.
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