TTY Corp. uses a job-order costing system to account for its production. During the month of January, the following events occurred: a. Materials were purchased on account for $35,480. b. Materials totaling $33,650 were requisitioned for use in production. c. Direct labor payroll was $15,750 for January. d. Actual overhead of $41,260 was incurred and paid. e. Factory overhead was charged to production at the rate of 280 percent of direct labor. f. Completed units costing $85,450 were transferred to finished goods. g. Units costing $77,825 were sold on account for $101,175. 8. How much is the COGS if over/under applied FOH will be closed to COGS? 9. How much is the WIP if over/under applied FOH will be allocated to WIP, FG, and COGS
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.
TTY Corp. uses a
a. Materials were purchased on account for $35,480.
b. Materials totaling $33,650 were requisitioned for use in production.
c. Direct labor payroll was $15,750 for January.
d. Actual
e. Factory overhead was charged to production at the rate of 280 percent of direct labor.
f. Completed units costing $85,450 were transferred to finished goods.
g. Units costing $77,825 were sold on account for $101,175.
8. How much is the COGS if over/under applied FOH will be closed to COGS?
9. How much is the WIP if over/under applied FOH will be allocated to WIP, FG, and COGS
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