The Madalilangto Ink Company prepared the following table for the year 2019: Production Service Departments Departments H G U V 250,000 100,000 350,000 157,500 61,000 Rent 770,000 15,000 14,500 7,000 Repairs 120,500 23,000 30,000 7,500 Fuel 420,000 9,500 7,000 6,000 Indirect Labor 170,000 145,000 100,000 97,500 Indirect 56,500 127,000 94,500 60,000 Materials Heat and Light 202,500 151,200 9,000 3,000 6,000 1,500 7,500 2,000 Depreciation Miscellaneous 94,000 60,000 71,300 50,500 500 500 500 Following is the result of the factory survey regarding service departments: [A] Department U services G, V, and W in the ratio of 2:1:1, respectively; [B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively; [C] Department W services Department H and G in the ratio of 3:1, respectively.
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.
Compute for the total
![The Madalilangto Ink Company prepared the following table for the year 2019:
Production
Service Departments
Departments
H
G
U
V
Rent
770,000
120,500
420,000
170,000
250,000
15,000
14,500
30,000
7,000
Repairs
100,000
23,000
9,500
145,000
7,500
Fuel
350,000
157,500
7,000
100,000
6,000
Indirect Labor
97,500
Indirect
61,000
56,500
127,000
94,500
60,000
Materials
Heat and Light
202,500
151,200
9,000
6,000
7,500
Depreciation
94,000
71,300
3,000
1,500
2,000
Miscellaneous
50,500
Following is the result of the factory survey regarding service departments:
[A] Department U services G, V, and W in the ratio of 2:1:1, respectively;
[B] Department V services Department H, G, U, and W in the ratio of 4:3:2:1, respectively;
[C] Department W services Department H and G in the ratio of 3:1, respectively.
60,000
500
500
500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F645201b8-4b83-40cc-a555-356672d6ba94%2Fdeb61ec7-b7fe-4eaa-b1d9-ad264be5eea1%2Fmlvchac_processed.png&w=3840&q=75)
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