heridan Company developed the following data: Beginning work in process inventory $ 120000 Direct materials used 520000 Actual overhead 640000 Overhead applied 610000 Cost of goods manufactured 1620000 Ending work in process 90000 How much are total manufacturing costs for the period? $1590000 $1770000 $1530000 $1250000
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.
Sheridan Company developed the following data:
| Beginning work in process inventory | $ 120000 |
| Direct materials used | 520000 |
| Actual |
640000 |
| Overhead applied | 610000 |
| Cost of goods manufactured | 1620000 |
| Ending work in process | 90000 |
How much are total
Direct material: Direct material is used in production of goods and is the part of prime cost
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