Brody Company makes industrial cleaning solvents. Various chemicals, detergents and water are mixed together and then bottle din 10-gallon drums. Brody provided the following information for last year: [{HtmlTable Raw materials purchases $250,000 Direct labor 140,000 Depreciation on factory equipment 45,000 Depreciation on factory building 30,000 Depreciation o headquarters building 50,000 Factory insurance 15,000 Property taxes Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 156,000 Sales office salaries 90,000 Beginning balance, raw materials 124,000 Beginning balance work in process 124,000 Beggining balance, finished goods 84,000 Ending balance, raw materials 102,000 Ending balance, work in process 130,000 Ending balance, finished goods 82,000 Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000 and Brody paid sales commission of 5% of sales. Calculate the total prime cost for Brody.
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.
Brody Company makes industrial cleaning solvents. Various chemicals, detergents and water are mixed together and then bottle din 10-gallon drums. Brody provided the following information for last year: [{HtmlTable
Raw materials purchases $250,000
Direct labor 140,000
Depreciation on factory building 30,000
Depreciation o headquarters building 50,000
Factory insurance 15,000
Property taxes
Factory 20,000
Headquarters 18,000
Utilities for factory 34,000
Utilities for sales office 1,800
Administrative salaries 150,000
Indirect labor salaries 156,000
Sales office salaries 90,000
Beginning balance, raw materials 124,000
Beginning balance work in process 124,000
Beggining balance, finished goods 84,000
Ending balance, raw materials 102,000
Ending balance, work in process 130,000
Ending balance, finished goods 82,000
Last year, Brody completed 100,000 units. Sales revenue equaled $1,200,000 and Brody paid sales commission of 5% of sales. Calculate the total prime cost for Brody.
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