Mina Manufacturing Company purchases of materials during March totaled P110,000. While direct labor cost incurred was P160,000 and factory overhead amounted to P80,000. Other information pertaining to Mat's inventories and other costs incurred for March are as follows: March 1 March 31 Inventories: P102,000 40,000 20,000 P105,000 36,000 Finished Goods Work in process Materials 26,000 Costs incurred during the month: Selling Expenses Administrative Expenses P 65,000 23,500 7,200 P 603,750 31 of the current year Interest Expense Sales Revenue for the month Required: Cost of goods sold for the month ended March and Income Statement for the month ended March 31 of the current year.
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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