From the following information prepare a cost sheet to show : (a) Prime cost; (b) Works cost; (c) Cost of production ; (d) Cost of sales; and (e) Profit. $ Raw materials purchased 32,250 Carriage on purchases 850 Direct wages 18,450 Factory overhead 2,750 Selling overhead 2,450 Office overhead 1,850 Sales 75,000 Sale of factory scrap 250 Opening stock of finished goods 9,750 Closing stock of finished goods 11,100
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.
From the following information prepare a cost sheet to show :
(a) Prime cost; (b) Works cost; (c) Cost of production ; (d) Cost of sales; and (e) Profit.
$
Raw materials purchased 32,250
Carriage on purchases 850
Direct wages 18,450
Factory
Selling overhead 2,450
Office overhead 1,850
Sales 75,000
Sale of factory scrap 250
Opening stock of finished goods 9,750
Closing stock of finished goods 11,100
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