The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $56,200 of indirect materials) $607,500 Direct labor (including $84,400 maintenance salaries) 562,500 Factory overhead: Supervisor salaries 517,500 Heat, light, and power 140,650 Sales salaries 348,750 Promotional expenses 315,000 Insurance and property taxes—plant 151,900 Insurance and property taxes—corporate offices 219,400 Depreciation—plant and equipment 123,750 Depreciation—corporate offices 90,000 Total $3,076,950
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.
The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report.
| Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 |
||
| Materials used in production (including | ||
| $56,200 of indirect materials) | $607,500 | |
| Direct labor (including $84,400 maintenance salaries) | 562,500 | |
| Factory overhead: | ||
| Supervisor salaries | 517,500 | |
| Heat, light, and power | 140,650 | |
| Sales salaries | 348,750 | |
| Promotional expenses | 315,000 | |
| Insurance and property taxes—plant | 151,900 | |
| Insurance and property taxes—corporate offices | 219,400 | |
| Depreciation—plant and equipment | 123,750 | |
| Depreciation—corporate offices | 90,000 | |
| Total | $3,076,950 |
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