During March, 6,700 units of product were manufactured, and 6,350 units of the product were sold. There were no beginning inventories. During March, the following costs were incurred: Raw Materials $ 76,900 Direct Labor 132,600 Manufacturing Overhead 64,800 Selling Expenses 46,000 Administrative Expenses 19,300 Interest Expense 9,300 a. Calculate the total cost of goods manufactured during March, and the average cost of a single unit of the product. b. Calculate the cost of goods sold during March. c. Calculate the ending finished goods inventory for March.
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.
During March, 6,700 units of product were manufactured, and 6,350 units of the product were sold. There were no beginning inventories. During March, the following costs were incurred:
Raw Materials $ 76,900
Direct Labor 132,600
Manufacturing
Selling Expenses 46,000
Administrative Expenses 19,300
Interest Expense 9,300
a. Calculate the total cost of goods manufactured during March, and the average cost of a single unit of the product.
b. Calculate the cost of goods sold during March.
c. Calculate the ending finished goods inventory for March.
d. Where in the financial statement will the difference between the total cost of goods manufactured and cost of goods sold be classified?
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