(Management Accounting) - What is the Cost of Goods Sold? The following information was obtained from the accounting records of Stevenson Incorporated: Direct materials purchased $80,000 Direct materials used $54,000 Direct manufacturing labor costs $12,000 Indirect manufacturing labor costs $11,000 Selling expenses $16,000 Administrative expenses $22,000 Factory utilities costs $20,000 Rental cost of factory machines $50,000 Work in process inventory, beginning 0 Work in process inventory, end 0 Finished goods inventory, beginning $10,000 Finished goods inventory, end $30,000 What is Cost of Goods Sold? A) $57,000 B) $77,000 C) $127,000 D) $147,000
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.
(
The following information was obtained from the accounting records of Stevenson Incorporated:
Direct materials purchased $80,000
Direct materials used $54,000
Direct manufacturing labor costs $12,000
Indirect manufacturing labor costs $11,000
Selling expenses $16,000
Administrative expenses $22,000
Rental cost of factory machines $50,000
Work in process inventory, beginning 0
Work in process inventory, end 0
Finished goods inventory, beginning $10,000
Finished goods inventory, end $30,000
What is Cost of Goods Sold?
- A) $57,000
- B) $77,000
- C) $127,000
- D) $147,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
