Management of Parrent Corporation has asked your help as an intern in preparing some key reports for April. The company started the month with raw materials inventories of P32,000. During the month, the company made raw materials purchases amounting to P68,000. At the end of the month, raw materials inventories totaled P35,000. Direct labor cost was P43,000 and manufacturing overhead was P62,000. The beginning balance in the work in process account was PI9,000 and the ending balance was P12,000. The beginning balance in the finished goods account was P35,000 and the ending balance was P58,000. Sales totaled P240,000. Selling expense was P18,000 and administrative expense was P42,000. The total manufacturing cost for April was: A. PI70,000 B. P173,000 C. P62,000 D.I 2/3 The cost of goods manufactured for April was: A. P177,000 B. P173,000 C. P170,000 D. P163,000 The cost of goods sold for April was: A. P123,000 B. P200,000 C. P217,000 D. P154,000 The net operating income for April was: A. P26,000 B. P86,000 C. P75,000 D. P7,000
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.
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