Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000 The January 1 balances of inventory accounts are shown below. Materials—all direct $70,000 Work-in-process 41,000 Finished goods 26,000 The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is: (Round your intermediate calculations to 1 decimal place.) Multiple Choice $1,354,700. $1,339,600. $1,336,700. $1,332,600. $1,373,600.
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.
Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory
| Direct materials used | $384,000 | ||
| Direct labor | 306,000 | ||
| Factory overhead | 658,000 | ||
The January 1 balances of inventory accounts are shown below.
| Materials—all direct | $70,000 | ||
| Work-in-process | 41,000 | ||
| Finished goods | 26,000 | ||
The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year.
The cost of goods manufactured during the year is: (Round your intermediate calculations to 1 decimal place.)
-
$1,354,700.
-
$1,339,600.
-
$1,336,700.
-
$1,332,600.
-
$1,373,600.
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