Manufacturing cost data for Sunland Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Case A Case B Work in process 1/1/22 $enter a dollar amount (a) $14,570 Direct materials used enter a dollar amount (b) $78,020 Direct labor 47,000 131,600 Manufacturing overhead applied 39,480 enter a dollar amount (d) Total manufacturing costs 136,911 enter a dollar amount (e) Total cost of work in process 189,410 enter a dollar amount (f) Work in process 12/31/22 enter a dollar amount (c) 11,092 Cost of goods manufactured 180,762 enter a dollar amount (g)
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.
Manufacturing cost data for Sunland Company, which uses a
Indicate the missing amount for each letter. Assume that in all cases manufacturing
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Case A
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Case B
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|---|---|---|---|---|---|---|---|
| Work in process 1/1/22 | $enter a dollar amount | (a) | $14,570 | ||||
| Direct materials used | enter a dollar amount | (b) | $78,020 | ||||
| Direct labor | 47,000 | 131,600 | |||||
| Manufacturing overhead applied | 39,480 | enter a dollar amount | (d) | ||||
| Total |
136,911 | enter a dollar amount | (e) | ||||
| Total cost of work in process | 189,410 | enter a dollar amount | (f) | ||||
| Work in process 12/31/22 | enter a dollar amount | (c) | 11,092 | ||||
| Cost of goods manufactured | 180,762 | enter a dollar amount | (g) |
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