Silva Plastics Company has established standard cost for a duct as follows: Materials (3 kgs. @ P9) Labor (1 hour @ P84) Variable overhead (1 hour @ P24) Fixed overhead (1 hour @ P36) P27. 84.0 24.0 36.C P171.C Total standard unit cost At normal operating capacity, 100,000 units of product shom a year. Costs data pertaining to the operations for the year are s Materials purchased (200,000 kgs.) Materials used in production P1,908 18: Labor hours 58 Labor rate P9 Factory overhead- Variable P1,380 Fixed P3,600, During the year, 60,000 units of product were put into prc ompleted. There were no units in process at the beginning or at th here are also no inventories of raw materials or finished goods a ne year. EEQUIRED: ncos granhically and by, fo Determine th
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.
Step by step
Solved in 3 steps
