Dalton Productions had beginning balances as shown in the T−accounts below. Raw Materials Inventory 10,000 Work−in−Process Inventory 20,000 Finished Goods Inventory 25,000 Manufacturing Overhead 41,000 During June, the following transaction took place: June 2: Issued $2,300 of direct materials and $600 of indirect materials to production. What was the balance in the Manufacturing Overhead account following this transaction? A. $43,900 B. $41,000 C. $43,300 D. $41,600
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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Raw Materials Inventory
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10,000
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Work−in−Process
Inventory |
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20,000
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Finished Goods Inventory
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25,000
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Manufacturing
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41,000
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