The following information is derived from the cost sheet of Al Hood Manufacturing & Trading LLC: Manufacturing overhead RO 5,000 Selling & Distribution overhead RO 2,000 Direct material RO 10,000 Direct expenses RO 4,000 Administration overheads RO 1,000 Direct labor RO 3,000 Use the above information and answer 29, 30 and 31 MCQs 1-Calculate the cost of production that is incurred by Al Hood Manufacturing & Trading LLC. a. RO 23,000 b. RO 22,000 c. RO 8,000 d. RO 25,000 2-Calculate the cost of sales that is incurred for Al Hood Manufacturing & Trading LLC. a. RO 8,000 b. RO 25,000 c. RO 23,000 d. RO 22,000 3-Calculate the amount of conversion cost that is incurred for Al Hood Manufacturing & Trading LLC. a. RO 25,000 b. RO 22,000 c. RO 23,000 d. RO 8,000
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 following information is derived from the cost sheet of Al Hood Manufacturing & Trading LLC:
Manufacturing overhead RO 5,000
Selling & Distribution overhead RO 2,000
Direct material RO 10,000
Direct expenses RO 4,000
Administration
Direct labor RO 3,000
Use the above information and answer 29, 30 and 31 MCQs
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