Hello, Buck and Company incurred the following costs during August: Raw materials purchased $41,400 Direct labor ($13.6 per hour) 60,384 Manufacturing overhead (actual) 90,420 Selling expenses 31,890 Administrative expenses 14,070 Interest expense 6,112 Manufacturing overhead is applied on the basis of $20 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to the cost of goods sold only at the end of the year. During the month, 4120 units of product were manufactured and 4,400 units of product were sold. On August 1 and August 31, Buck and Company carried the following inventory balances. August 1 August 31 Raw materials $19,000 $17,800 Work in progress 53,000 56,000 Finished goods 40,100 27,267 Question a-1: Prepare a statement of costs of goods manufactured for the month of August. (Amounts to be deducted should be indicated by a minus sign). Buck and Company Statement of Goods manufactured for the month of August Raw Materials Purchases during August ??? Raw materials inventory, August 1 $19,000 Raw materials available for use ??? Less: Raw materials inventory, August 31 ??? Cost of raw materials used ??? ??? 60,384 Manufacturing overhead applied ??? ??? Total manufacturing costs, August ??? Statement of Goods manufactured, continued. Add: Work in Progress August 1 53,000 Less: Work in Progress August 31 ??? Cost of Goods manufactured, August ??? Question a-2: Calculate the average cost per unit of product manufactured. (Round your answers to 2 decimal places). Question b: Calculate the cost of goods sold during August. Question c: Calculate the difference between the cost of goods manufactured and the cost of goods sold. I'm going to submit the last part of this question on a separate question. Thanks...
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.
Hello,
Buck and Company incurred the following costs during August:
| Raw materials purchased | $41,400 |
| Direct labor ($13.6 per hour) | 60,384 |
| Manufacturing |
90,420 |
| Selling expenses | 31,890 |
| Administrative expenses | 14,070 |
| Interest expense | 6,112 |
Manufacturing overhead is applied on the basis of $20 per direct labor hour. Assume that overapplied or underapplied overhead is transferred to the cost of goods sold only at the end of the year. During the month, 4120 units of product were manufactured and 4,400 units of product were sold. On August 1 and August 31, Buck and Company carried the following inventory balances.
| August 1 | August 31 | |
| Raw materials | $19,000 | $17,800 |
| Work in progress | 53,000 | 56,000 |
| Finished goods | 40,100 | 27,267 |
Question a-1: Prepare a statement of costs of goods manufactured for the month of August. (Amounts to be deducted should be indicated by a minus sign).
Buck and Company
Statement of Goods manufactured for the month of August
| Raw Materials | ||
| Purchases during August | ??? | |
| Raw materials inventory, August 1 | $19,000 | |
| Raw materials available for use | ??? | |
| Less: Raw materials inventory, August 31 | ??? | |
| Cost of raw materials used | ??? | |
| ??? | 60,384 | |
| Manufacturing overhead applied | ??? | |
| ??? | ||
| Total |
??? |
| Statement of Goods manufactured, continued. | ||
| Add: Work in Progress August 1 | 53,000 | |
| Less: Work in Progress August 31 | ??? | |
| Cost of Goods manufactured, August | ??? | |
Question a-2: Calculate the average cost per unit of product manufactured. (Round your answers to 2 decimal places).
Question b: Calculate the cost of goods sold during August.
Question c: Calculate the difference between the cost of goods manufactured and the cost of goods sold.
I'm going to submit the last part of this question on a separate question. Thanks...
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