Direct manufacturing labor $228,000 Variable manufacturing overhead 120,000 Direct materials 180,000 Variable selling expenses 144,000 Fixed administrative expenses 96,000 Fixed manufacturing overhead 216,000
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.
For 2019, Kim, Inc., had production of 200,000 units and sales of 160,000 units. Selling price is $6 per unit. Other information for the year included:
| Direct manufacturing labor | $228,000 |
| Variable manufacturing |
120,000 |
| Direct materials | 180,000 |
| Variable selling expenses | 144,000 |
| Fixed administrative expenses | 96,000 |
| Fixed manufacturing overhead | 216,000 |
There was no beginning inventory.
Compute ending finished goods inventory under variable costing.
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