Gore Company makes products for sporting events. The following data are for the year ended December 31, 2014: Materials inventory, January 1, 2014 $45,000 Materials inventory, December 31, 2014 65,000 Materials purchases 175,000 Direct labor 225,000 Work in process inventory, January 1, 2014 30,000 Work in process inventory, December 31, 2014 40,000 Manufacturing overhead 130,000 Finished goods inventory, January 1, 2014 80,000 Finished goods inventory, December 31, 2014 140,000 Prepare a Cost of Goods Manufactured Statement and compute the cost of goods sold.
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.
Gore Company makes products for sporting events. The following data are for the year ended December 31, 2014:
Materials inventory, January 1, 2014 $45,000
Materials inventory, December 31, 2014 65,000
Materials purchases 175,000
Direct labor 225,000
Work in process inventory, January 1, 2014 30,000
Work in process inventory, December 31, 2014 40,000
Manufacturing
Finished goods inventory, January 1, 2014 80,000
Finished goods inventory, December 31, 2014 140,000
Prepare a Cost of Goods Manufactured Statement and compute the cost of goods sold.
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