Olivia’s Outdoor Essentials produces gear for climbing, hiking, and camping. Last month, Olivia reported the following: Beginning Work in Process Inventory: $20,000 Ending Work in Process Inventory: $25,000 Beginning Finished Goods Inventory: $15,000 Ending Finished Goods Inventory: $13,000 Direct Labor: $60,000 Direct Materials Used: $50,000 Indirect Materials Used: $8,000 Office Building Rent: $10,000 Total Manufacturing Overhead: $30,000 What was the Cost of Goods Manufactured for the period?
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.
Olivia’s Outdoor Essentials produces gear for climbing, hiking, and camping. Last month, Olivia reported the following:
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Beginning Work in Process Inventory:
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$20,000
|
|
Ending Work in Process Inventory:
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$25,000
|
|
Beginning Finished Goods Inventory:
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$15,000
|
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Ending Finished Goods Inventory:
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$13,000
|
|
Direct Labor:
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$60,000
|
|
Direct Materials Used:
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$50,000
|
|
Indirect Materials Used:
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$8,000
|
|
Office Building Rent:
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$10,000
|
|
Total Manufacturing
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$30,000
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What was the Cost of Goods Manufactured for the period?
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