Standard cost card, Cost Accounting

Assignment Help:

Standard Cost Card

It is a card record of the Standard or expected costs in producing a specified output.  This gives the physical quantities of inputs and also their monetary values. This gives also the quality required. As an example:  Grade a labour.

The setting process of standards results in the establishment of the standard cost for the product. The make-up of the standard cost is recorded on a standard cost card. As an example: a standard cost card in a company's X004 product would look given as:

Assuming the given product details as:

1. The product passes via department A, B, and C

2. It consume the following two types of direct materials as:

            P10:  2.5 kg (kilo-gram) each @ Shs.14.8:  it is applied in department A

            A53:  1000 units @ shs.3.75 per 100 units:  It is applied in department B.

3. X004 also used direct labour given as:

Grade M:  4.8 hours @ Shs.2.5/hr in Department A

Grade N:  9.2 hours @ Shs.2.5/hr in Department B.

Grade O:  (Assembly time):  16.4 hours @ Shs.1.75/hr in Department C.

4. Production overheads are applied given as:

Machine overheads:  based on direct labour hours. They are incurred like shs.11/hr in departments A and B.

Indirect labour:  based on direct labour hours in Department C above at shs.6/hr.

Required

Prepare or get ready a standard cost card for product X004.

Solution:

Standard Cost Card For Product X004

Revised:  31.12.2004 By:  Aron

Cost Type and Quantity

Standard Rate (shs)

Department A (shs)

Department B (shs)

Department C (shs)

Total (shs)

Direct Material

 

 

 

 

 

2.5kg of P10

14.8

37

-

-

37.00

1000 units of A53

3.75 per

-

37.5

-

37.50

 

100 units

 

 

 

74.50

Direct Labour

 

 

 

 

 

Grade M: 4.8hrs

2.5

12

-

-

12.00

Grade N: 9.2hrs

2.5

-

23

-

23.00

Grade O: 16.4 hrs

1.75

-

1

28.70

28.70

 

 

 

 

 

63.70

Production Overheads

 

 

 

 

 

Machining:

11

58.20

101.12

-

153.92

Indirect Labour

6

-

-

98.4

98.4

 

-

101.80

161.62

127.10

252.32

 

Standard Cost Summary:

 

 

 

 

Shs.

 

 

 

Direct Materials:

74.50

 

 

 

Direct Labour

63.70

 

 

 

Production Overheads

252.32

 

 

 

Standard cost per unit

390.52

 

 

 


Related Discussions:- Standard cost card

IDLE CAPACITY, HOW DOES IDLE CAPACITY EFFECT COST BEHAVIOR PATTERNS AND FAC...

HOW DOES IDLE CAPACITY EFFECT COST BEHAVIOR PATTERNS AND FACTORY OVERHEAD METHODS?

Compute the annual depreciation on the new equipment, Goldman Corporation b...

Goldman Corporation bought a machine on June 1, 2010, for $44,838, f.o.b. the place of manufacture. Freight to the point where it was set up was $282, and $705 was expended to inst

EXPECTED CASH COLLECTIONS.PRACTICE QUESTIONS, WORKED EXAMPLES OF EXPECTED C...

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Statements on tax standards, Compare the American Institute of CPAs' (AICPA...

Compare the American Institute of CPAs' (AICPA) Statements on Tax Standards (SSTS) and the Treasury Department Circular 230 rules to practice before the Internal Revenue Service (I

Cost accounting, using relevant examples discuss the meaning and scope of c...

using relevant examples discuss the meaning and scope of cost accounting

Semi fixed costs, Semi Fixed Costs Are costs along with both a variabl...

Semi Fixed Costs Are costs along with both a variable and fixed cost component? The fixed component is such portion that is constant irrespective of the level of activity. The

Adjusting entry for Inventory, What are the five accounts used in adjusting...

What are the five accounts used in adjusting entry for periodic inventory at the end of the year?

Accounting, Ask What is the major value of the weighted cost of capital cal...

Ask What is the major value of the weighted cost of capital calculation for the firm? question #Minimum 100 words accepted#

Match the item below by entering the appropriate code letter, Match the ite...

Match the items below by entering the appropriate code letter A. Controller B. Deficit C. Payout Ratio D. Stock Dividend E. Declaration Date F. Preemptive right G. Par Value H. L

Prepare the material cost budget of products of a company, Prepare the Mate...

Prepare the Material Cost Budget of products of a Company For a company along with many products, a periodic budget would be developed given as: Assume a firm has 3 products X

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd