Find the work in process and and finished goods for july 31 using the following information below: • Purchased $399,560 of materials • Used $342,540 of direct materials in production • Incurred $290,100 of direct labor wages • Applied factory overhead at a rate of 73% of direct labor cost • Transferred $818,820 of work in process to finished goods • Sold goods with a cost of $796,000 • Sold goods for $1,400,110 • Incurred $313,290 of selling expenses • Incurred $125,090 of administrative expenses
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.
Find the work in process and and finished goods for july 31 using the following information below:
| • | Purchased $399,560 of materials |
| • | Used $342,540 of direct materials in production |
| • | Incurred $290,100 of direct labor wages |
| • | Applied factory |
| • | Transferred $818,820 of work in process to finished goods |
| • | Sold goods with a cost of $796,000 |
| • | Sold goods for $1,400,110 |
| • | Incurred $313,290 of selling expenses |
| • | Incurred $125,090 of administrative expenses |
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