Cove Co. has a cycle time of 3 days, uses a raw and in process (RIP) account, and charges all conversion cost to cost of goods sold. At the end of each month, all inventories are counted, their conversation costs components are estimated, and inventory account balances are adjusted. Raw materials cost is BACKFLUSHED from RIP to Finished goods. The following information is for June. Beginning balance of RIP account including P 20,560 of conversion cost P 42,600 Beginning balance of finished goods account, including P 22,000 of conversion cost 45,000 Raw materials received on credit 356,000 Direct labor cost, P 350,000 factory overhead P 196,150 Ending RIP inventory per physical count, including P 15,500 conversion cost 22,500 Ending finished goods inventory per count, including P 11,600 conversion cost 16,000 What is the total amount of 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.
Cove Co. has a cycle time of 3 days, uses a raw and in process (RIP) account, and charges all conversion cost to cost of goods sold. At the end of each month, all inventories are counted, their conversation costs components are estimated, and inventory account balances are adjusted. Raw materials cost is BACKFLUSHED from RIP to Finished goods.
The following information is for June.
Beginning balance of RIP account including P 20,560 of conversion cost P 42,600
Beginning balance of finished goods account, including P 22,000 of conversion cost 45,000
Raw materials received on credit 356,000
Direct labor cost, P 350,000
factory
Ending RIP inventory per physical count, including P 15,500 conversion cost 22,500
Ending finished goods inventory per count, including P 11,600 conversion cost 16,000
What is the total amount of cost of goods sold?
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