Jackson Furniture Company provided the following manufacturing costs for the months of June Direct labor costs Direct materials costs Equipment depreciation (straight-line) Factory insurance Factory manager's salary Janitor's salary $120,000 62,000 OA. $279,700 OB. $64,100 OC. $78,900 OD. $68,400 27,000 10,500 10,000 14,800 18,800 16,600 Packaging costs Property taxes on the factory From the above information, calculate Jackson's total fixed costs.
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.
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