Calculate the balance in the Finished Goods Inventory account as of March 31. Finished Goods Inventory account as of March 31 $
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.
Coronado Company produces high-quality microscopes for education and health care uses. The company uses a
| Job | Beginning Balance |
Direct Materials added during March |
Direct Labor added during March |
Direct Labor Hours added during March |
|||||
|---|---|---|---|---|---|---|---|---|---|
|
134
|
$120,600 | $6,000 | $9,400 | 140 | |||||
|
158
|
125,450 | 3,500 | 12,160 | 450 | |||||
|
212
|
21,800 | 88,400 | 36,650 | 3,500 | |||||
|
287
|
36,350 | 71,800 | 31,850 | 2,550 | |||||
|
301
|
18,990 | 21,845 | 1,400 | ||||||
|
Total
|
$304,200 | $188,690 | $111,905 | 8,040 |
Jobs 134 and 158 were started in January, Jobs 212 and 287 were started in February, and Job 301 was started in March. During March, workers completed Jobs 134, 158, and 212. Jobs 134 and 212 were delivered to customers during March.
Actual overhead for the month of March was $176,300. The manufacturing overhead account is disposed of annually, not monthly.
Calculate the balance in the Finished Goods Inventory account as of March 31.
| Finished Goods Inventory account as of March 31 | $enter the finished goods inventory account as of March 31 in dollars |
Manufacturing overhead is applied to product /job orders using Pre-determined Overhead Rate
Pre-determined Overhead Rate=Estimated manufacturing overhead /Direct Labour Hours
Finished Goods Inventory is the inventory which is available to customers for purchase.
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