Kapangan Manufacturing Company uses a job-order costing system and started the month of October with a zero balance in its finished goods inventory accounts. Job A15 was unfinished at the end of September having materials cost of P9,000 and labor cost of 6,000. During October, Kapangan started three jobs and incurred the following costs: 1.Job A15 2.Job B18 3.Job B19 4.Job C11 Direct materials 1.P2,500 2.P12,000 3.P25,000 4.P18,000 Direct labor 1.3,000 2.8,000 3.10,000 4.5,000 Kapangan applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapangan completed Jobs A15, B18 and B19 and sold Job A15 and Job B19. help me with this problems i don't know how to answer it 1. What is Kapangan's work in process inventory balance at the beginning of October? 2. What is Kapangan's cost of goods manufactured for October? 3. What is Kapangan's work in process inventory balance at the end of October?
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.
Kapangan Manufacturing Company uses a job-order costing system and started the month
of October with a zero balance in its finished goods inventory accounts. Job A15 was unfinished at
the end of September having materials cost of P9,000 and labor cost of 6,000. During October,
Kapangan started three jobs and incurred the following costs:
1.Job A15
2.Job B18
3.Job B19
4.Job C11
Direct materials
1.P2,500
2.P12,000
3.P25,000
4.P18,000
Direct labor
1.3,000
2.8,000
3.10,000
4.5,000
Kapangan applies manufacturing overhead at a rate of 150% of direct labor cost. During October,
Kapangan completed Jobs A15, B18 and B19 and sold Job A15 and Job B19.
help me with this problems i don't know how to answer it
1. What is Kapangan's work in process inventory balance at the beginning of October?
2. What is Kapangan's cost of goods manufactured for October?
3. What is Kapangan's work in process inventory balance at the end of October?
4. Prepare simple cost sheets
5. If Kapangan sells its products at 140% of cost, how much is the company's gross profit for
October?
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