Countertops Unlimited, a manufacturer of kitchen and bath countertops, had the following information for production last period: Beginning Work in Process Inventory $31,250 Ending Work in Process Inventory 37,500 Beginning Materials Inventory 20,000 Ending Materials Inventory 17,500 Materials Purchased 256,250 Direct Labor 81,250 Indirect Labor 25,000 Indirect Materials Used 68,750 Factory Rent 43,750 Factory Utilities 18,750 Office Supplies 12,500 Administrative Salaries 131,250 Assuming that all manufacturing overhead was applied to Work in Process inventory, Cost of Goods Manufactured for the period was: Select one: a. $458,750 b. $431,250 c. $421,250 d. $271,250 e. $156,250
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.
Countertops Unlimited, a manufacturer of kitchen and bath countertops, had the following information for production last period:
| Beginning Work in Process Inventory | $31,250 |
| Ending Work in Process Inventory | 37,500 |
| Beginning Materials Inventory | 20,000 |
| Ending Materials Inventory | 17,500 |
| Materials Purchased | 256,250 |
| Direct Labor | 81,250 |
| Indirect Labor | 25,000 |
| Indirect Materials Used | 68,750 |
| Factory Rent | 43,750 |
| Factory Utilities | 18,750 |
| Office Supplies | 12,500 |
| Administrative Salaries | 131,250 |
Assuming that all manufacturing
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