Greenland Company applies manufacturing overhead to jobs using a predetermined overhead rate of 125% of the cost of direct materials used. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company Raw Materials: Purchased during the month Direct Materials used in production Indirect Materials used in production Labor: Direct labor hours worked during the month Direct labor costs incurred Indirect labor costs incurred. $ 96,500.00 $ 110,400.00 $ 18,500.00 $ 4,400.00 $ 133,200.00 $ 53,280.00 Manufacturing overhead costs incurred (actual total) $176,280.00 Inventories: Raw Materials, March 1 Raw Materials, March 31 Work in process, March 1 Work in process, March 31 $ 42,750.00 $ 10,350.00 $7,900.00 $ 12,350.00 How much was the Cost of Goods Manufactured during March?
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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