Administrative Costs Total Building Depreciation Direct Materials Inventory, January 1 Direct Materials Inventory, December 31 Direct Materials Purchased During the Year Finished Goods Inventory, December 31 Indirect Labor Maintenance on Plant Machinery Marketing Costs Operating Profit Other Plant Overhead Plant Supervision and Administration Plant Supplies and Indirect Materials Sales Revenues Taxes on Manufacturing property Work-in-Process Inventory, January 1 Work-in-Process Inventory, December 31 ($ Thousands) $150 400 15 20 1,570 80 180 140 110 960 83 155 67 5,000 117 80 110
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.
Required: Prepare a Cost of Goods Manufactured Statement and an Income Statement. If there are any calculations involved show them. Create this in Excel.
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