Gates Manufacturing reports based on an October 31 fiscal year. As a part of your interview for a cost analyst position, the interviewer provides you with the following information: Direct materials purchases Work-in-process inventory, November 1 Finished goods inventory, November 1 Finished goods inventory, October 31 Manufacturing overhead Cost of goods sold Direct labor Decrease in work-in-process inventory Average sales price per unit Gross margin percentage Required: a. Find the cost of goods manufactured. b. Find the total manufacturing costs. $ 96,000 53,000 c. Find the direct materials used. d. Find the sales revenue. e. Find the increase (decrease) in direct materials inventory. 30,800 31,800 57,600 221,000 30,400 28,000 20 35%
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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