Costing

Question 1

Job-order Costing (Direct Cost)

Answer 1

DM & DL charge to each job (directly traced)
MOH use POHR (constant rate)

Question 2

Process Costing (Direct Cost)

Answer 2

DL and MOH are put together to form Conversion Cost
Use Weighted Average Method

Question 3

Process Costing (Allocation)

Answer 3

1. Beginning WIP Inventory + Production Started = Production completed + Ending WIP Inventory
2. Find EU of Completed and EWIP
3. Take (Cost incurred + cost of beginning inventory)/Outputs from (2) to find Cost per EU
4. find the Value of Goods Completed and Ending WIP Inventory

Question 4

ABC Costing (Direct Cost)

Answer 4

Unlike Traditional, it does not assign all manufacturing cost to products but assigns both Manufacturing and Non-manufacturing cost

Question 5

Assigning Overheads (ABC Method)

Answer 5

1. Assign Overhead Cost to Activity Cost Pools
2. divide by the activity to find activity rate
3. Assign by job activity