Complete the information in the cost computations shown here: Raw materials Beginning inventory $342 Purchases 1,534 Materials available for use $fill in the blank 1 Ending inventory 320 Materials used in production $fill in the blank 2 Work in process inventory Beginning inventory $933 Materials used in production fill in the blank 3 Direct labor 1,533 Overhead applied fill in the blank 4 Manufacturing costs incurred $22,418 Ending inventory 933 Cost of goods manufactured $fill in the blank 5 Finished goods inventory Beginning inventory $fill in the blank 6 Cost of goods manufactured fill in the blank 7 Goods available for sale $24,982 Ending inventory fill in the blank 8 Cost of goods sold $21,769
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.
Complete the information in the cost computations shown here:
| Raw materials | |
| Beginning inventory | $342 |
| Purchases | 1,534 |
| Materials available for use | $fill in the blank 1 |
| Ending inventory | 320 |
| Materials used in production | $fill in the blank 2 |
| Work in process inventory | |
| Beginning inventory | $933 |
| Materials used in production | fill in the blank 3 |
| Direct labor | 1,533 |
| fill in the blank 4 | |
| $22,418 | |
| Ending inventory | 933 |
| Cost of goods manufactured | $fill in the blank 5 |
| Finished goods inventory | |
| Beginning inventory | $fill in the blank 6 |
| Cost of goods manufactured | fill in the blank 7 |
| Goods available for sale | $24,982 |
| Ending inventory | fill in the blank 8 |
| Cost of goods sold | $21,769 |
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