Pinnacle Inc. manufactures curtains to client specifications, It has two cost categories that are directly traced to its products: materials and labor. It also has estimated overhead that consists of: • annual manufacturing supervisor's salary of $144,261 • annual manufacturing plant cleaning costs of $134,360 • annual manufacturing plant utilities of $135.978 Pinnacle is trying to calculate the cost of making Job #454, which includes: $11.351 in materials • 35 hours of labor @ $12 per hour The company also expects to use 20,367 labor hours for the year, If Pinnacle allocates overhead based on $250.000 estimated direct labor dollars what is the total cost ofJob #454? "Hint, make a job order cost sheet for Job 454. It should include materials, labor, and overhead. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.
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.
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