Suppose that Cooplan manufactures four products: W, X, Y and Z. Output and cost data for the period just ended are as follows. direct marginal cost per unit ($) labour hours number of Machin output units production runs in the e hours per per units period unit 10 3 20 1 1. 10 5 80 3 100 2 20 1. 1. 100 4 80 14 Direct labour cost per hour is 10 $. Overhead costs are as follows: set-up costs 12500 short-run variable costs 4080 production and scheduling costs 9800 material handing costs 7500 33880 3 x N >
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.
Required
Calculate product costs using the following approaches.
(a) Absorption costing
(b) ABC
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
