How to Calculate Project Costing in Cost Accounting Assignment

Cost accounting is something which is required everywhere to improve management. From managing home expenses to business cost management, it is used in every aspect. In this era, one can’t imagine a life without cost accounting.

Students who are pursuing accounting courses study this subject and get the bulk of assignment in it. Since it is a tough nut to crack, they often seek cost accounting assignment help from Instant Assignment Help which helps them in writing the top-notch document. We’ve observed that we receive orders of especially those documents which include the problems or concepts of project costing because college-goers find these questions hard. To help you with it, here are the easy ways to calculate project costing.

How to Calculate Project Costing?

Project Costing is the major expense which has to be managed well in an organization in order to gain profits. It includes the calculations of several costs in the cost accounting assignment Following is the list of those cost with the information from basic to calculation technique.

Unit Costing

Unit cost is the total cost which is involved in manufacturing, marketing, storing, etc. of a single unit of the bulk products. For example, the device which you are using right now to read this blog must be manufactured, transported, marketed, etc. That’s why the price you gave included the total expense. Unit costing can be easily calculated by using the following formula presented by our assignment helpers.

Unit Cost = Variable Costs + Fixed Costs
                       Total Units Produced

Job Costing

Every product around you is the result of several people doing their jobs accurately. Like, the system on which you are reading this is the result of the hard work of the computer engineers, electronics engineers, manufacturing team, etc. That’s why the final cost of this system consists of all the revenue. The method of generating the final cost of the product which involves more than one expense is known as job costing. It is calculated through the following formula.

Job costing = Direct Materials + Direct Labor + Applied Overhead

Process Costing

Every thing around us is the result of several processes like the device in front of you went through several stages like designing, manufacturing, transportation, etc. Each process consists of some expenses which the organization needs to calculate for planning the profit margin. So, the process of calculating the expense in each process is known as process costing. Below is the simple formula to calculate it.

Process costing =   Net cost of input        
                                   Expected Output

Product Costing

Product costing is the calculation of the total expense which consists of the total cost of materials, labor charges, electricity consumption, etc. This helps the organization know what is the expense involved in developing the final product so that it can analyze and process it further. Usually, it is calculated by the job costing and process costing methods which are mentioned above.
So, next time when you get the problem in your cost accounting assignment related to product costing, use one of the above methods to calculate it as per the given values.

Marginal Costing

Marginal costing is the total cost which is involved in producing the extra units of the existing or sold product. It can increase as well as decrease as per the process costing. The reason behind it is the change in the material’s cost, labor’s cost, etc. Below is the simple formula to calculate it.

Marginal costing =  Change in Costs      
                                Change in Quantity

Solving project costing problems are easy in cost accounting assignment. The key is understanding the concept rather than just learning the formulas. If you know the concept, you’ll find it easy. So, learn the concepts mentioned above for calculating and solving the project costing problems easily.

Summary

Wondering how you’ll solve the project costing problems of the cost accounting? The solution is here.

Read Also: A Helpful Guide to Finance Assignment Topics for Students to Save Time