ACC 406 Lecture Notes - Lecture 4: Finished Good, Accounts Receivable, Income Statement
1 Mar 2016
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For manufacturing firms, unit costs are essential for: For service firms, unit costs are used to determine: Firms operating in job-order industries produce a wide-variety of services or products that are quite distinct from each other. Firms producing identical products or services can use a process-costing accounting system. In normal costing, overhead must be estimated and applied to output. Three step process: calculate the predetermined overhead rate, apply overhead to production, reconcile applied overhead with actual overhead or allocate applied overhead to wip and finished goods ending inventories. At the beginning of the year, argus company estimated the following costs: Argus uses normal costing and applies overhead on the basis of direct labour cost: calculate the predetermined overhead rate for the year, calculate the overhead applied to production in february. For the month of february, direct labour cost was ,000. At the beginning of the year, argus. By the end of the year, actual data are:
