Irresistible Art produces collectible pieces of art. The company's Raw Material Inventory account includes the costs of both direct and indirect materials. Account balances for the company at the beginning and end of July follow: July 1 July 31 Raw Material Inventory $167,760 $125,280 Work in Process Inventory 263,520 216,000 Finished Goods Inventory 129,600 188,640 During the month, the company purchased $1,180,800 of raw material; direct material used during the period amounted to $907,200. Factory payroll costs for July were $1,418,400, of which 75 percent was related to direct labor. Overhead charges for depreciation, insurance, utilities, and maintenance totaled $1,080,000 for July. a. Prepare a schedule of cost of goods manufactured. Note: Do not use negatives signs with your answers. Irresistible Art Schedule of Cost of Goods Manufactured For the Month Ended July 31 Beginning WIP inventory Answer Answer Raw material purchased Answer Raw material available Answer Answer Answer Raw material used Answer Answer Answer
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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