On July 1, Job 46 had a beginning balance of $1,235. During July, prime costs added to the job totaled $560. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job was $1,921. Required: 1. What was overhead applied to the job during July? $fill in the blank 1 2. What was direct materials for Job 46 for July? Direct labor? Direct labor $fill in the blank 2 Direct materials $fill in the blank 3 3. Assuming that overhead is applied on the basis of direct labor cost, what is the overhead rate for the company? (Note: Round your answer to the nearest whole percent.) fill in the blank 4
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.
On July 1, Job 46 had a beginning balance of $1,235. During July, prime costs added to the job totaled $560. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job was $1,921.
Required:
1. What was
$fill in the blank 1
2. What was direct materials for Job 46 for July? Direct labor?
| Direct labor | $fill in the blank 2 |
| Direct materials | $fill in the blank 3 |
3. Assuming that overhead is applied on the basis of direct labor cost, what is the overhead rate for the company? (Note: Round your answer to the nearest whole percent.)
fill in the blank 4
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