Q4) Calculate Full Costing for the three years data following? 4 Marks Basic Data Selling price per unit sold……………………………………………………Rs. 25 Variable Manufacturing cost per unit produced………………………………Rs10 Fixed Manufacturing cost Per Year…………………………………….Rs.300,000 Variable selling and admin exp. Per unit sold…………………………………Rs.1 Fixed selling and admin exp. Per Year………………………………….Rs.200,000 Year 1 Year 2 Year 3 Units in Beginning inventory…………………………….. 0 0 ? Units in ending Inventory………………………………… 0 ? 0
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.
Q4) Calculate Full Costing for the three years data following? 4 Marks
Basic Data
Selling price per unit sold……………………………………………………Rs. 25
Variable
Fixed Manufacturing cost Per Year…………………………………….Rs.300,000
Variable selling and admin exp. Per unit sold…………………………………Rs.1
Fixed selling and admin exp. Per Year………………………………….Rs.200,000
Year 1 Year 2 Year 3
Units in Beginning inventory…………………………….. 0 0 ?
Units in ending Inventory………………………………… 0 ? 0
Units produced is 44400 for year 1, units produced for year 2 is 55500 and for year 3 units produced is 33300
Units sold for year all three year is 44400
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