Kalikaw Company had the following transactions during its first month of operations: Purchased P20,000 of direct materials, spent and used P30,000 and P40,000 of direct labor and manufacturing overhead, respectively, and used P14,000 of direct materials in production. The month-end work-in-process inventory consisted of P8,000 of direct materials, P10,000 of direct labor, and P15,000 of manufacturing overhead. The month-end finished goods inventory consisted in part of P12,000 of direct labor and P16,000 of manufacturing overhead. The cost of goods sold for the month was P20,000. The material component of the finished goods inventory is?
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.
Kalikaw Company had the following transactions during its first month of operations: Purchased P20,000 of direct materials, spent and used P30,000 and P40,000 of direct labor and manufacturing
The material component of the finished goods inventory is?
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