Baginski Company uses a normal job costing system and allocates manufacturing overhead on the basis of direct labor hours. The predetermined manufacturing overhead rate is $18 per direct labor hour. Baginski Company's schedule of cost of goods manufactured showed the following amounts for the month ended November 30. Cost of goods manufactured $124,000 Cost of direct materials used 42,000 Cost of direct labor ($32 per hour) 76,000 Work in process inventory, November 1 14,500 Actual manufacturing overhead costs for November amount to $44,000. What is the amount of work in process inventory (before any adjustment for over-allocated or under-allocated manufacturing overhead) on November 30? Select one: a. $162,000 b. $51,250 c. $50,000 d. $29,500 e. $52,500
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.
Baginski Company uses a normal
|
Cost of goods manufactured |
$124,000 |
|
Cost of direct materials used |
42,000 |
|
Cost of direct labor ($32 per hour) |
76,000 |
|
Work in process inventory, November 1 |
14,500 |
Actual manufacturing overhead costs for November amount to $44,000.
What is the amount of work in process inventory (before any adjustment for over-allocated or under-allocated manufacturing overhead) on November 30?
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