Note: Assume all raw materials were used as direct materials. Inventories Raw materials inventory Work in process inventory Finished goods inventory Activity during current year Raw materials purchased Direct labor Factory overhead Required A Required B Compute total manufacturing costs. QS 14-17 (Algo) Schedule of cost of goods manufactured LO P2 Factory overhead of $44100 consists of Indirect labor of $21,700. Depreciation expense-Factory of $16,700, and Factory utilities of $5,700. a. Compute total manufacturing costs. b. Prepare a schedule of cost of goods manufactured. Raw materials inventory Beginning of Year Direct materials used $ 7,700 15,400 11,900 $ 126,900 95,700 44,100 Complete this question by entering your answers in the tabs below. Total manufacturing costs End of Year $ $ 10,900 10,700 7,200
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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