Danica Corp. provided the following inventory balances and cost data for the month of June. June 1 June 30 Direct Materials 30 000 40 000 Work in Process 15 000 20 000 Finished Goods 65 000 50 000 Production data for the month of June follows: Cost of goods manufactured 515 000 Factory overhead applied 150 000 Direct materials used 190 900 Actual factory overhead 144 000 Required: Compute the COST OF GOODS SOLD under ACTUAL COSTING.
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.
Danica Corp. provided the following inventory balances and cost data for the month of June.
| June 1 | June 30 | |
| Direct Materials | 30 000 | 40 000 |
| Work in Process | 15 000 | 20 000 |
| Finished Goods | 65 000 | 50 000 |
Production data for the month of June follows:
| Cost of goods manufactured | 515 000 |
| Factory |
150 000 |
| Direct materials used | 190 900 |
| Actual factory overhead | 144 000 |
Required: Compute the COST OF GOODS SOLD under ACTUAL COSTING.
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