At the end of April 2022 PT Rajawali presented the company's cost data. Raw material inventory is Rp. 15,000,000. The purchase of raw materials is Rp. 35,000,000, the cost to the warehouse is 10%, and the purchase return is 10%. Indirect raw materials used amounted to Rp. 6,000,000.00. The use of direct raw materials and indirect raw materials uses one account, and on July 31, 2021, there is still a raw material inventory of Rp. 5,000,000,00 Requested: Make it with the cost information above, the amount of raw materials that are ready to be used, and the direct materials used. Note: write down along with the complete way of working
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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