Ending June 30 records for June 30 for ABC Company Revenue 1,600,000 150,000 55,000 Raw Materials Purchased in Month Direct Labor Cost Advertising Expense Rent on Factory Sales Commissions 25,000 42,000 70,000 22,000 Maintenance Expense on factory Equip. Supplies for the Factory Depreciation on Factory Equipment Indirect labor Cost 3,500 35,000 50,600 Utilities Expense for Factory Depreciation on Sales Office Cars 12,000 22,000 WIP Finished Goods 35,000 Raw Mati Beginning Inventory Ending Inventory 12,000 8,000 15,000 20,000 40,000 Prepare the Cost of Goods Manufactured and Cost of goods sold for the month below
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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