Hello, (continued from an earlier submitted question, thanks) 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 d: Prepare a traditional (absorption) income statement for Buck & Company for the month of August. Assume that sales for the month were $281,000 and the company's effective income tax rate was 29%. Buck and Company Absorption Income Statement for the month of August: Sales $281,000 Cost of Goods sold ??? Gross Profit ??? Selling and Admin Expenses ??? Operating Income ??? Interest expense $6,112 Income before taxes ??? Income tax expense ??? Net Income ??? 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, (continued from an earlier submitted question, thanks)
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 d: Prepare a traditional (absorption) income statement for Buck & Company for the month of August. Assume that sales for the month were $281,000 and the company's effective income tax rate was 29%.
Buck and Company
Absorption Income Statement for the month of August:
| Sales | $281,000 |
| Cost of Goods sold |
??? |
| Gross Profit | ??? |
| Selling and Admin Expenses | ??? |
| Operating Income | ??? |
| Interest expense | $6,112 |
| Income before taxes | ??? |
| Income tax expense | ??? |
| Net Income |
??? |
Thanks.
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