ACC Inc is working on calculating cost information for September. The beginning and ending inventories for the month of September are: 1-Sep 9/31/2023 Direct Materials $82,000 $77,000 Work in Process $121,000 $135,000 Finished Goods $58,000 $45,000 Production data for the month of September follows: Direct labor $175,500 Manufacturing overhead $185,500 Direct materials purchased $153,000 Using the above information answer the following questions: 1. What was the amount of direct materials added to production during the month? 2. What was the total amount of manufacturing cost added to production during the month? 3. What was the amount of cost of goods manufactured? 4. What was the amount of cost of goods sold?
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.
| ACC Inc is working on calculating cost information for September. | ||
| The beginning and ending inventories for the month of September are: | ||
| 1-Sep | 9/31/2023 | |
| Direct Materials | $82,000 | $77,000 |
| Work in Process | $121,000 | $135,000 |
| Finished Goods | $58,000 | $45,000 |
| Production data for the month of September follows: | ||
| Direct labor | $175,500 | |
| Manufacturing |
$185,500 | |
| Direct materials purchased | $153,000 | |
| Using the above information answer the following questions: | ||
| 1. What was the amount of direct materials added to production during the month? | ||
| 2. What was the total amount of |
||
| 3. What was the amount of cost of goods manufactured? | ||
| 4. What was the amount of cost of goods sold? |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
