Data about Kiko Company’s production and inventories for the month of June are as follows: Purchases - direct materials ₱143,440 Freight-in ₱5,000 Purchase returns and allowances ₱2,440 Direct labor ₱175,000 Actual factory overhead ₱120,000 Inventories: June 1 June 30 Finished goods ₱68,000 ₱56,000 Work-in-process ₱110,000 ₱135,000 Direct materials ₱52,000 ₱44,000 Kiko Company applies factory overhead to production at 80% of direct labor cost. Over or underapplied overhead is closed to cost of goods sold at year-end. The company’s accounting period is on the calendar year basis. Show your solution. Kiko Company’s prime cost for June was ₱154,000 ₱329,000 ₱198,000 ₱315,000 20.) Kiko Company’s conversion cost for June was ₱315,000 ₱295,000 ₱329,000 ₱444,000 21.) For the month of June, Kiko Company’s total manufacturing cost was ₱469,000 ₱444,000 ₱644,000 ₱449,000
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.
Data about Kiko Company’s production and inventories for the month of June are as follows:
Purchases - direct materials ₱143,440
Freight-in ₱5,000
Purchase returns and allowances ₱2,440
Direct labor ₱175,000
Actual factory
Inventories: June 1 June 30
Finished goods ₱68,000 ₱56,000
Work-in-process ₱110,000 ₱135,000
Direct materials ₱52,000 ₱44,000
Kiko Company applies factory overhead to production at 80% of direct labor cost. Over or underapplied overhead is closed to cost of goods sold at year-end. The company’s accounting period is on the calendar year basis. Show your solution.
Kiko Company’s prime cost for June was
₱154,000
₱329,000
₱198,000
₱315,000
20.)
Kiko Company’s conversion cost for June was
₱315,000
₱295,000
₱329,000
₱444,000
21.)
For the month of June, Kiko Company’s total
₱469,000
₱444,000
₱644,000
₱449,000
22.)
For June, Kiko Company’s cost of goods transferred to the finished goods inventory account was
₱579,000
₱461,000
₱469,000
₱444,000
23.)
Kiko Company’s cost of goods sold for June was
₱441,000
₱481,000
₱456,000
₱444,000
24.)
The amount of over/under-applied overhead factory for the month of June was
₱140,000 overapplied.
₱120,000 underapplied.
₱20,000 overapplied.
₱20,000 underapplied.
25.)
The cost of goods sold for the month of June should be increased (decreased) by the amount of over/under-applied factory overhead of
₱20,000
(₱20,000)
(₱120,000)
₱0
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