The related data of Jean Grey Company: Direct materials 315,600 Direct labor 186,700 Depreciation on factory equipment 23,000 Other factory expenses 87,500 Selling expenses 75,000 Administrative expenses 50,200 Factory overhead applied is 60% of the direct labor cost. How much is the product costs?
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 related data of Jean Grey Company:
Direct materials 315,600
Direct labor 186,700
Depreciation on factory equipment 23,000
Other factory expenses 87,500
Selling expenses 75,000
Administrative expenses 50,200
Factory
How much is the product costs?
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