5. (L.O. 7) The Helper Corparation manufactures one product. You have obtained the following information for the year ended December 31, 19x3, from the cor- poration's books and records: Total manufacturing costs during 19x3 were $1,000,000 based on direct ma- terials, direct labor, and factory overhead. Cost of goods manufactured was $970,000, also based on direct materials, direct labor, and factory overhead. Factory overhead was 75 percent of direct labor dollars. Factory.overhead for the year was 27 percent of total manufaċturing costs. Beginning work in process inventory on January 1 was 80 percent of ending work in process inventory on December 31. aired | Prepare a statement of cost of goods manufactured for the Helper Corporationn for the year ended December 31, 19x3. Show supporting computations. (CPA)
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.
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