Dani Corp incurred costs of P50,000 for direct materials (raw) purchased. Direct labor was P60,000 and factory overhead was P35,000 for May. Inventories were as follows: Raw materials beginning P14,000; raw materials ending P10,000 Work-in-process beginning 24,000; work-in-process ending 36,000 Finished goods beginning 10,000; finished goods ending 25,000 Required: Calculate the cost of goods manufactured for May
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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