20.Cost of Goods Manufactured for a Manufacturing Company The following information is available for Fuller Manufacturing Company for the month ending October 31: Cost of direct materials used in production $106,000 Direct labor 127,200 Work in process inventory, October 1 47,700 Work in process inventory, October 31 64,700 Total factory overhead 58,300 Determine Fuller Manufacturing’s cost of goods manufactured for the month ended October 31. Fuller Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ended October 31 $ Manufacturing costs incurred during October: $ Total manufacturing costs incurred Total manufacturing costs $ Cost of goods manufactured
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.
20.Cost of Goods Manufactured for a Manufacturing Company
The following information is available for Fuller Manufacturing Company for the month ending October 31:
| Cost of direct materials used in production | $106,000 |
| Direct labor | 127,200 |
| Work in process inventory, October 1 | 47,700 |
| Work in process inventory, October 31 | 64,700 |
| Total factory |
58,300 |
Determine Fuller Manufacturing’s cost of goods manufactured for the month ended October 31.
| Fuller Manufacturing Company | ||
| Statement of Cost of Goods Manufactured | ||
| For the Month Ended October 31 | ||
| $ | ||
| $ | ||
| Total manufacturing costs incurred | ||
| Total manufacturing costs | $ | |
| Cost of goods manufactured |
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