2. Superior Manufacturing Company has the following cost and expense data for the year ending December 31, 2010. Raw materials, 1/1/10 - $ 30,000 Raw materials, 12/31/10 - $20,000 Raw materials purchases - $205,000 Indirect materials - $15,000 Work in process, 1/1/10 - $80,000 Work in process, 12/31/10 - $50,000 Insurance, factory $ 14,000 Property taxes, factory building $6,000 Sales (net) $1,500,000 Delivery expenses $100,000 Sales commissions $150,000 Indirect labor $90,000 Finished goods, 1/1/10 - $110,000 Finished goods, 12/31/10 - $120,000 Direct labor - $350,000 Factory manager's salary - $35,000 Factory machinery rent $40,000 Factory utilities $65,000 Depreciation, factory building $24,000 Administrative expenses $300,000 Instructions (a) Prepare a cost of goods manufactured schedule for Superior Company for 2010. (b) Prepare an income statement for Superior Company for 2010. (c) Assume that Superior Company's ledgers show the balances of the following current asset accounts: Cash $17,000, Accounts Receivable (net) $120,000, Prepaid Expenses $13,000, and Short-term Investments $26,000. Prepare the current assets section of the balance sheet for Superior Company as of December 31, 2010.
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.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 6 images
