NoFlush is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has NO variable overhead. Total DM $24,000 Total DL $6,000 Total Fixed OH $12,000 Total completed and in process 6,000 units Units in finished goods 150 Units in process 100 The firm has $200 of raw materials at the end of the period. Which of the following are the correct balances of the COGS account before and after inventory costs are backflushed? (Round rates to the nearest cent if necessary.) A. Before: $24,000 After: $22,800
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.
NoFlush is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has NO variable
| Total DM | $24,000 |
| Total DL | $6,000 |
| Total Fixed OH | $12,000 |
| Total completed and in process | 6,000 units |
| Units in finished goods | 150 |
| Units in process | 100 |
The firm has $200 of raw materials at the end of the period. Which of the following are the correct balances of the COGS account before and after inventory costs are backflushed? (Round rates to the nearest cent if necessary.)
A.
Before: $24,000
After: $22,800
B.
Before: $30,000
After: $29,000
C.
Before: $24,000
After: $23,000
D.
Before: $30,000
After: $28,800
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