Latexim company manufactured clothes. Latexim uses a process costing system. The following information on Assembly Process is extracted from Latexim’s record; Input materials 3,200 kilogram (kg) RM18 per kg Labour and overhead incurred RM12,000
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.
Latexim company manufactured clothes. Latexim uses a
following information on Assembly Process is extracted from Latexim’s record;
Input materials 3,200 kilogram (kg) RM18 per kg
Labour and overhead incurred RM12,000
Expected normal loss 7% of input
Assuming that the losses can be sold as scrap for RM1.50 per kg. You are required
compute:
i) Scrap value of normal loss in RM.
ii) Expected output in kg.
iii) Calculate cost per kg
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