Connecticut Manufacturing began business on January 1. During its first year of operation, Connecticut worked on five industrial jobs and reported the following information at year - end: Direct Materials Direct Labor Allocated Mfg. Overhead. Job completed: Job sold: Revenues: Job 1 $2,800 $15,000 $1,700 Jun 30 Jul 10 $33,000 OA. $55,100 OB. $19,500 OC. $58,500 OD. $56,800 Job 2 $8,400 $21,300 $7,600 Sep 1 Sep 12 $48,000 Job 3 $4,000 $13,000 $2,500 Oct 15 Not sold N/A Job 4 $3,500 $12,000 CHI $7,500 Nov 1 Not sold N/A Connecticut's allocation of overhead costs left a debit balance of $1,700 in the Manufacturing Overhead account, which was adjusted to zero at year-end. What was the final balance in Cost of Goods Sold for the year ended December 31? Job 5 $1,500 $800 $200 Not completed N/A N/A
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.
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