Data for the year just ended: Estimated total manufacturing overhead cost Estimated total direct labor hours Actual total direct labor hours Actual costs for the year: Purchase of raw materials (all direct) Direct labor cost Manufacturing overhead costs Inventories: Raw materials (all direct) Work in process Finished goods Beginning $ $ $ 15,000 $ 27,875 $ 34,600 $ $ 275,000 25,000 27,760 $375,000 $536,300 $302,750 Ending 11,375 22,350 26,450
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.
The statement of cost of goods manufactured represents the cost of goods that are finished during the period.
The statement of cost of goods sold represents the cost of goods that are sold during the period.
The overhead is applied to the production on the basis of a predetermined overhead rate. The pre-determined overhead rate is calculated as the estimated overhead cost divided by the estimated base activity.
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By chance, do you have the formulas that you used for each answer so i can study it more?
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