ntegrated Excel: Calculating Cost of Goods Manufactured and Cost of Goods Sold Stanford Enterprises uses job-order costing. Overhead is applied on the basis of direct labor hours. The following information relates to the year just ended. Data: Estimated total overhead costs $ 2,75,000 Estimated total direct labor hours 25,000 Actual total direct labor hours 27,760 Actual costs for the year: Purchase of raw (direct) materials $ 3,75,000 Direct labor cost $ 5,36,300 Manufacturing overhead $ 3,02,750 Inventories: Beginning Ending Raw Materials (All Direct) $ 15,000 $ 11,375 Work in Process 27,875 22,350 Finished Goods 34,600 26,450 Use the data to answer the following. Calculate and dispose of overapplied or underapplied manufacturing overhead. Calculate the cost of goods manufactured and cost of goods sold. Prepare an income statement for a manufacturing firm. Navigation: Use the Open Excel in New Tab button to launch this question. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
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.
Integrated Excel: Calculating Cost of Goods Manufactured and Cost of Goods Sold
Stanford Enterprises uses
The following information relates to the year just ended.
Data:
| Estimated total overhead costs | $ 2,75,000 |
|---|---|
| Estimated total direct labor hours | 25,000 |
| Actual total direct labor hours | 27,760 |
Actual costs for the year:
| Purchase of raw (direct) materials | $ 3,75,000 |
|---|---|
| Direct labor cost | $ 5,36,300 |
| Manufacturing overhead | $ 3,02,750 |
| Inventories: | Beginning | Ending |
|---|---|---|
| Raw Materials (All Direct) | $ 15,000 | $ 11,375 |
| Work in Process | 27,875 | 22,350 |
| Finished Goods | 34,600 | 26,450 |
Use the data to answer the following.
- Calculate and dispose of overapplied or underapplied manufacturing overhead.
- Calculate the cost of goods manufactured and cost of goods sold.
- Prepare an income statement for a manufacturing firm.
Navigation:
- Use the Open Excel in New Tab button to launch this question.
- When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
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