Cornelius Company produces women's clothing. During the year, the company incurred the following costs: $ 381,500 Factory rent Direct labor 303,000 Utilities-factory 38,400 557,500 Purchases of direct materials Indirect materials Indirect labor Inventories for the year were as follows: Materials Work-in-Process Finished Goods January 1 $ 25,500 45,250 136,000 66,850 60,600 December 31 $ 40,750 40,200 75,550 Required: 1&2. Prepare a statement of cost of goods manufactured and calculate cost of goods sold.
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.
Accounting
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