Here are selected data for Towry Corporation: Beginning raw materials inventory $ 37,000 Beginning work in process inventory $61,500 Beginning finished goods inventory $56,300 Cost of materials purchased $151,000 Cost of direct materials requisitioned $91,300 Direct labor incurred $125,000 Actual manufacturing overhead $160,000 Cost of goods manufactured $287,000 Cost of goods sold $265,000 Manufacturing overhead rate (% of direct labor) 125% What is the ending work in process inventory balance? Select one: a. $151,500 b. $207,450 c. $211,200 d. $156,250 e. $147,050
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.
Here are selected data for Towry Corporation:
|
Beginning raw materials inventory |
$ 37,000 |
|
Beginning work in process inventory |
$61,500 |
|
Beginning finished goods inventory |
$56,300 |
|
Cost of materials purchased |
$151,000 |
|
Cost of direct materials requisitioned |
$91,300 |
|
Direct labor incurred |
$125,000 |
|
Actual manufacturing |
$160,000 |
|
Cost of goods manufactured |
$287,000 |
|
Cost of goods sold
|
$265,000
|
|
Manufacturing overhead rate (% of direct labor)
|
125%
|
What is the ending work in process inventory balance?
Manufacturing cost incurred during the period = Direct material used + Direct labor + Manufacturing overhead applied
= $91,300 + $125,000 + ($125,000*125%)
= $372,550
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