On March 1, 2020, Gon Company Purchases materials amounting to 65,000, net of defective materials worth 5,000 returned to the supplier upon inspection of the quality control officers. Gon also incurred 5,000 freight-in for these purchases. The total cost of goods available for sale is 150,000. Other nformation pertaining to Gon Company's inventories for March is as follows: s Inventories 3/30/19 3/1/19 Finished Goods 80,000 80,000 Work in Process 55,000 22,000 Raw Materials 50,000 30,000
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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